Early Warning Signals For Boomer Entrepreneurs

Imagine you lived and worked in Japan five years ago and knew with certainty that there would be an earthquake and tsunami in 2011. Imagine you knew it would devastate the region with ripple effects to the whole country, what would you do differently? Move your family? Sell your business? Start a company that did disaster clean up? Sell your home on the low ground and buy on the high ground? Leave the country?

Here's something that we know with even more certainty. There is a tsunami heading for the North American economy. It's The Business Transition Crisis created by millions of baby boomer business owners. Most entrepreneurs are avoiding the issue at their peril. In her book, Willful Blindness, Margaret Heffernan documents at great length that most people, when faced with uncomfortable or unpopular information, will close their eyes to it. And in many cases, they make decisions that have horrendous effects on their health, their families, and their reputations, even to the point of dying rather than facing up to the reality that was staring them in the face.

The warning signals are out there. Companies are closing every day. Other companies are being bought by competitors. Virtually every business advisor is warning of the dangers. But here's the problem; today, the tsunami is just a just a small wave, moving slowly but inexorably towards you. It's lulled you into thinking you have lots of time. By the time you realize that it's building steam, it's too late.

Here's a starting place to prepare yourself and your business for the wave that's coming:

1. Think about it. Open your eyes fully and look at it. The wave doesn't care if you acknowledge it or not; it's still coming.

2. Look at your business objectively, realistically. Ask yourself some tough but necessary questions and if you can't do it yourself, speak to someone who can.

3. Get a professional valuation. How will you know what to expect when you do sell your business if you don't know where you're starting from now and what gap you may have to bridge.

4. Your business should always be ready to sell. It takes a few years to get it ready if you haven't already started so get the ball rolling now.

5. Train and coach your management team so they are capable of running the business without you. Take more time off, more vacations and coach them to make better decisions on their own.

6. Get a coach who can help you stay focused on doing what's in your best long term interests, even if it's uncomfortable now.

Right now, the water's up your ankles. You still have time to move, but it's getting higher.