Are you looking to sell you business in British Columbia? Did you know there's a potential problem around the corner that you may not be aware or, an opportunity if you're looking to buy a business. According to TD Waterhouse 65% of all small business owners are set to plan to retire in the next 5 to 10 years. The majority of business owners are retiring, yet 26% don't know who they'll sell their business to.
Another view of this is when you take a look at succession planning, or exit planning, only 10% of businesses have a written succession plan in place. 90% of have an informal succession plan or no succession plan at all. The number one reason for this is that most people can't figure out how to finance a successor or who to sell their business to. PWC put out a study that shows that 23% of business owners look at shutting down their businesses or are unsure what they are going to do with it, 18% will transfer it to a family member, and only 20% plan on selling it.
When you look at these numbers, 50% of these small business owners are set to shut down their business, or don't know what to do with their business over the next few years. In addition to this, the ones that want to sell it, in a best case scenario, only 30% of businesses ever get sold, which means an additional 14% of the businesses won't get sold.
65% of all small business owners are set to retire. 90% have no formalized succession plan, and 70% of small business won't sell, or may not sell. This means that over a third of all small businesses Canada could shut down over the next few years. As a business owner, what should you do? Immediately you should start looking at your exit strategy or your succession plan. Then, as a person who wants to take over a business, you need to take a look at opportunities on the plate right now and start looking at businesses that you could take over.
If you're trying to sale your business, reach out to me and I'll show you how to access over 3,500 firms looking for companies that are for sale in British Columbia. Also, I can point you in the right direction to find people that can help you with your business.
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