So folks by now, I hope you understand that as you can tell I’m very excited about the change of my business to home care evolution, adapt, transform, thrive. As part of my commitment to this new evolution of my business and how we help home care companies grow and scale. Our focus of these videos will now be split between the five different areas that we help home care business owners grow. Sales and marketing, operations, recruitment and retention, financial and bring mean it all together so that you can exit your business. Anytime you want to. Why am I talking about exiting so much? Cause I’ve been talking about it for about the last two years. The reason why I’ve been talking about exiting so much is not so much for the new people getting into the business but rather for what I’ve seen in this industry.
Coronavirus really changed everything. It changed the world. It changed the way that we adapt. It changed the way that we think about disease and infection. It changes the way that we live our everyday lives. The industry that was hit the hardest from coronavirus was the healthcare industry. And as a result of all of the constant regulation changes, compliance, protocols for this, and today it’s this, and then tomorrow it’s that. And next week it’s this and it just then the new variance to come out. More people now than I’ve ever seen before, are simply burnt out. And they’re just, I’m done, I wanna retire. I wanna get out of this industry. I wanna move on to something else. I wanna use this as a stepping stone to get into real estate or something else. It’s time for me to go. I’ve run the good, I fought the good fight. It’s time for me to go. So as a result of this, I’ve helped almost a dozen of my clients prepare and exit their home care businesses which is why I’m doing this for you. Because if you feel that you are at that point you wanna leave, go ahead and leave. Because right now I’ll tell you home care businesses are getting higher multiples now than they ever have before. Because for every person who wants to exit there’s a thousand people who are watching these videos like you who want to get into home care. Think about the coronavirus from a business standpoint perspective, right?
From a business standpoint perspective, people didn’t open McDonald’s the way that they did prior to COVID. People haven’t open gyms. People didn’t open restaurants and other type of businesses. Why? Because coronavirus caused a grow great halt in everything. So as a result, all of those franchise systems that were thriving and every year statistically would open up X amount of new locations, they didn’t. It doesn’t mean that the people don’t have the money to do it. It just means that the people who have the money who wanted to open didn’t. And as a result, they started looking into, what are other businesses that are pandemic proof. Low and behold home care is right at the top of the list because not only is it pandemic proof it’s where people want to be. It’s where we need to keep the elderly safe from contamination and infection, right? As a result, more people wanna get into home care now than ever. This is why I’ve been telling folks that it’s a great time to be in the home care business.
So if I wanna exit my business someday or if you’re one of the people who are thinking well, Steve I want to get into home care and I’m watching this. How come? What does that have to do with me? It comes down to one thing. You always have to be running your business as if you are going to sell it one day, because whether you sell it tomorrow or 25 years from now, one day you’re gonna exit the business. And there are multiple ways of exiting a home care business. It’s not just selling it and exiting it. Some people bring it on a partner or they bring in an equity firm. Well, how do I know when I should bring in an equity firm? I’ll tell you, you gotta make sure those profits are 20% or greater. Those profits are 20% are greater and you’re generating over 5 million a year in total revenue, equity firms are looking for you and they will pay you top dollar to get in. You get a 50/50 partner, maybe even 60/40 where they buy 60% of the business but they give you top dollar for it. And then now you’re the president of your current company but they bring in all these extra resources, allowing you you to hire more stuff you can quickly take that 5 million business to 10 million to 15 million. And that is a form of exiting.
Another form of exiting that you may or may not have considered is legacy. Bringing it to the next generation. You know, I’m a father of three myself. My son Steven is 11 years old. I have spent more time talking about business ownership than actually getting a job. He wants to do some type of profession, specifically he wants to be a veterinarian but he doesn’t wanna be a veterinarian and work for a veterinarian hospital. No, no, no, no, no. He wants to have his own practice because daddy taught him how to be an entrepreneur. So you may have children who are involved in your business or who are graduating. who you may wanna get into your business. You have to plan for that. You have to set up for it because I can also tell you too, generationally, because I help people do this first generation, Meaning the owner of the business hands it off to their child.
Only 33% of the time does that business continue to thrive in success. That means that two out of three people who do that the child runs the business into the ground and the business doesn’t go any further, interesting. From that, if it goes from your child to eventually your grandchild it’s got a 12% success rate at that point which means that one in 10 that go distance actually make it and survive. And if it happen to go a fourth generation I know you may think, what is this long after I’m gone my great grandchildren, right? Taking over the family business. It has less than a 3% chance of success to make it to that point. What am I saying? It’s all things that you have to plan and prepare for. This doesn’t happen overnight. So that’s why I’m taking the time to talk to you about it. Cause these are all different forms of exiting the business. Selling it, bringing in an equity firm and partners and becoming either a regional or a corporation or even a franchise or legacy bringing my children into it making it the family business and continuing it for generational wealth going forward. What does exit look like for you? If this is something that you’re considering doing or if you’re just getting started in the business but you want to be able to plan for this exit 10 20 years from now, pick up the phone, give us a call come to one of my conferences, come to one of my workshop days so I can help you adapt, transform, thrive, so that you can blow away the competition.