Always Plan for the Exit: Mike Finger’s Strategic Blueprint for Entrepreneurs

In this episode of Humans of Flippa, we delve into the world of entrepreneurship, buying, selling, and growing businesses. Joined by Mike Finger, a seasoned entrepreneur and a passionate advocate for small businesses, Mike has over 25 years of experience in buying, building, and selling businesses and has become a beacon of knowledge in making businesses saleable.

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Understanding the Landscape

Mike sheds light on the staggering numbers that define the small business landscape in the United States. With approximately 33 million small businesses, the majority of which (80%) are owner-operated, and a significant portion (16%) having less than 20 employees, Mike highlights the critical role small businesses play in the economy. However, despite their prevalence, Mike emphasizes the lack of accurate information and guidance available to small business owners, particularly concerning mergers and acquisitions (M&A) discussions.

Learning from Experience

Mike’s journey into entrepreneurship wasn’t without its challenges. He shares the poignant story of his first business venture, which started in the mid-90s from his living room alongside his wife. Despite significant growth over a decade, Mike found himself burnt out and ready to sell. However, his initial attempts to sell the business were met with rejection due to fundamental shortcomings in its structure and financials.

The Path to Saleability

Realizing the disparity between his perception of the business’s value and its market readiness, Mike embarked on a journey of transformation. He identified key areas for improvement, focusing on generating desirable financial results and building a business that could thrive independently of its owner. This strategic shift, though challenging, eventually paved the way for a successful sale, providing Mike with a newfound sense of freedom and perspective.

Reflecting on his exit, Mike emphasizes the importance of aligning business ownership with personal fulfillment and financial security. While the monetary outcome of an exit is significant, Mike stresses the value of achieving a level of independence and satisfaction that transcends monetary measures. He underscores the need for entrepreneurs to assess not only the growth potential of their ventures but also their ability to fulfill personal and professional aspirations.

Conclusion

Mike Finger’s journey serves as a testament to the transformative power of strategic planning and perseverance in the world of entrepreneurship. His insights offer a roadmap for aspiring business owners to navigate the complexities of business ownership, with a keen eye towards building businesses that are not only successful but also saleable. As Mike aptly demonstrates, always planning for the exit ensures that entrepreneurs not only build businesses but also create opportunities for future growth and personal fulfillment.