Hilltide update- closing in

[hilltide]

I love reading peoples updates so I figured I would post one for me. Thank you in advance for your feedback and encouragement.

I am almost 47 Years Old and Wife is 40. I have a 2 year old daughter. I closed my own company down 10 years ago to transition to the family business. It went so well that I bought my dad and his partner out. I have a partner as well. I handle Sales and light Operations. My partner handles Operations.

We are within 12 months of paying our obligation off to the founders. We had 7 years to do it. We grew the company and should have it wrapped up in 4 total. We have 43 Employees.

The financial side has been outstanding and I will get into the numbers in a second. Emotionally, I am burned out like many of you. How did I get burned out so quickly? I have been in full grind since the age of 20. I am sure I am to blame as the work/health balance thing I have not been able to get right.

I do enjoy some aspects of the job but ultimately I do not have a passion for the business. It is a means to an end. I am hoping the end is retirement and not feet first.

I advised my partner and my father that I am going to run the business for 3 more years and work on an exit strategy in the interim.

I have not found someone that can take over my role so the obvious step would be to sell. There is a ton of acquisition in our industry so I should be able to find a buyer. The problem is once you start looking word gets out and our competitors start using this against us. It will be a delicate process of exiting.

I will try and find the right fit as I do care about the people that helped us get here. I have implemented aggressive bonus structures to take care of our people. Our business profits are starting to tighten as we continue to deal with the supply chain issues.

The numbers:

Tax Deferred: 829k
After Tax : 2.5 Mill
HSA 28k

3.3 Net Worth

Primary Home Value 600k paid off
Rental 400k paid off generating 2k per month income
529 for daughter 20k

My goal for the next three years is to get to 5 Million before 50 and fund the 529k. My expenses have been all over the place and I need to get those dialed in. We were really good at budgeting when we were going through the Dave Ramsey plan years ago but have gotten away from it.

The Financial side seems to be going well. Having a hard time with exit strategy of business and not feeling like I am abandoning my people.

That said, my family is #1. If I continue at this level of stress, I do not feel it will be a good ending.

Reading this site keeps me motivated and has given me the confidence to prepare for the exit. Thank you everyone for your valuable input.

 

[MBAustin]

Nice update, hilltide. Sounds like you have a good handle on planning for what's next, and it does seem that tracking spending and figuring out your expenses is important (with a child that young, you'll have a lot of kid-related costs for quite a few years of your ER). Good luck with the transition!

 

[street]

You did very well, and I like to read updates and hear the success stories. I wish you the best in the future.

 

[Scrapr]

Sounds like you are close. The market has been rolling the last ten + years so plan for something unforseen to happen "soon".

Good for you taking care of your employees. Is your partner onboard with selling in a few years? Is he/she a potential purchaser of your share? Can you hire someone to take things off your plate? You busted your *ss to get your note paid off & it seems you only get 2 years to reap your efforts (after paying off the note) I would try to let that run a bit. President Emeritus or something.

I worked with a business coach to help me through finding someone to buy my business. My business wasn't in the same size as yours so I had to find a person, train them & now mentor them while he pays me off.

Good luck

 

[hilltide]

Sounds like you are close. The market has been rolling the last ten + years so plan for something unforseen to happen "soon".

Good for you taking care of your employees. Is your partner onboard with selling in a few years? Is he/she a potential purchaser of your share? Can you hire someone to take things off your plate? You busted your *ss to get your note paid off & it seems you only get 2 years to reap your efforts (after paying off the note) I would try to let that run a bit. President Emeritus or something.

Great questions Scrapr! I agree about reaping some of our efforts after payoff. It crosses my mind all the time. If i can find someone to take some pressure off me in the next few years i would consider keeping it.

However, our industry is shifting through merger and acquisition. Mid size family owned businesses like ours struggle to keep up with some of the big boys. Right now we are holding our own but taking some money off the table is intriguing . We are still versatile and a lot of our clients like that. Thanks for your input. It helps talking through all the scenarios.

 

[Love This Community]

Nice update hilltide. I hear you on the expenses side. Sometimes, when you’re too busy making a living and growing your income, it’s hard to focus on line items side of expenses. As long as you’re aware of this and directionally good don’t beat yourself up too much. Expenses side of the equation is very important and I am sure you will get more granular as you get closer to pulling the plug.

 

[LiveBelowMeans]

Great update. It sounds like you have a nice slice of Americana going. I would be hesitant to exit too early. I would explore off loading those aspects of the job that you hate. Make a list of what you like and dislike about the job and try to find someone to take on the dislike. You need to make your life easier while still enjoying the fruits of the company you have built. It would be worth it to hire someone or two to reduce your stress. JMHO