A new owner or operator of any business—or even a home, for that matter—often brings a renewed sense of enthusiasm. There’s usually a desire to improve something, work hard at it, or simply change it for the sake of making it their own.
The same can be said for many aspects of life: switching clubs or teams in sport, changing jobs, or receiving a promotion. Whenever we embark on something new, we tend to start strong, but over time, the novelty wears off—sometimes quickly, sometimes gradually. Unless you're truly committed, it can be difficult to maintain that initial level of intensity.
Immediately after purchasing a business or, more specifically, a motel, it is expected that the new owner or manager will be keen to stamp their mark on the business and work hard to improve it. As the old saying goes, no one ever buys a business without intending to improve it. This most likely means long hours and a desire to build Rome in a day.
But over time, it’s human nature for motivation to decrease or fade. This can be a natural progression or driven by changing circumstances, such as health issues, relationship changes, or any number of life factors.
As a result, we may not work as hard as we did in the beginning and make adjustments to accommodate this. That might involve appointing a manager to run the business or hiring additional employees to take up the slack.
Everyone is different, and for some people, working hard until they cannot physically or mentally do it anymore, is just part of their make up. Others, when they know they have had enough, may be more inclined to get out or make a change. Then there are those somewhere in between that find a happy balance and work within that.
The first type of person may never (or rarely) take a holiday to recharge, and that is fine for them. Others may take many holidays and are happy to retire as soon as possible. Then some balance work and time off and can recharge and continue merrily along.
It’s not easy to put on a smile during difficult times; however, running a service-based business often requires it. If guests are frequently not greeted with a smile, it may be a sign that it’s time for a change. Recognising this is undoubtedly the hardest part—but once acknowledged, it becomes time to reassess the situation and consider the path forward.
Businesses are bought and sold every day, and there are numerous reasons why any business is offered for sale to the market. It can be due to retirement, upscaling, downsizing, simplifying life, taking a capital gain, tiredness, burnout, changes in circumstances, health issues, and more. Often, the reason is exhaustion. The business owner needs a break and has lost the enthusiasm to do those little extra things they once did. In a perfect world, preparing for sale needed to be considered well before now, not once the mindset has changed and moved on. The best financial decision-making position is when things are calm and not when they are based on highly emotive reasons or forced positions.
Excluding the occasional customer, motels have a fairly regular timetable of activity. Busy until mid-morning or even lunchtime, a lull during the middle of the day and they ramp up again for check-ins later in the day.
Utilising any downtime where possible is a good way to manage time and energy. Working yourself into the ground to try and save a dollar here or there is commonplace, but it can’t be maintained long term. Those who operate their motel business and manage a lifestyle can comfortably operate the same motel for decades. Longevity such as this in any business means they are doing something right and have a good work/lifestyle balance that suits them.
From a planning and management perspective, having a length of tenure goal is a great idea; however not always easy to achieve. Some may reach the goal and extend well beyond. Others may choose to opt out much sooner. Either way making that decision at the right or appropriate time is the key.
Having a strategy to prepare to take any business to the market is the ideal way to approach things. Many future sellers contact their broker at least a few months in advance of wanting to go to the market. The discussions should include what needs to be prepared, if any processes or operational matters need to be changed or fixed, allowing time for all involved to have the correct information and data ready to attract genuine buyer interest. Deciding one day to sell and wanting it to be offered to the market the next is not ideal. It is the case of getting the initial process right rather than just shooting from the hip.
Not being in a position of “must sell” will assist in achieving the best result. Selling at the right time, when not under pressure, makes the sale process less stressful. If the seller is happy and the buyer is happy, it’s a win-win situation!
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