Your Business IS Your Retirement Plan: Why West Salem Owners Need to Know Their Company's True Value

Drive down Wallace Road or Edgewater Street today, and you'll see a very different West Salem than even ten years ago. Where family-owned shops once stood for a generation or two, we now see empty storefronts, corporate chains, or completely new developments.

Imagine Tom, who's owned an equipment repair shop near the bridge for 28 years. He's assuming he'll get $650,000 when he's ready to retire – that's what he needs for the retirement he and his wife have planned. But when the time comes to sell, the only serious offer is $300,000. Suddenly, retirement looks very different.

This scenario plays out across Salem more often than you'd think. Remember the old print shop on Wallace? The specialty automotive store that used to be on Edgewater? The family restaurant that served the community for decades? Some closed without succession plans. Others sold for far less than expected. A precious few successfully transitioned to new owners who kept the legacy alive.

The Changing Face of West Salem Business

West Salem has transformed dramatically over the past decade. The Glen Creek area has exploded with development. Second Street has seen longtime businesses shutter while others fight to adapt. Even stalwart West Salem institutions have struggled with succession.

Consider the statistics: In Oregon, roughly 80% of businesses listed for sale never actually sell. Not because they're bad businesses, but because owners discover too late that what they built doesn't translate into sellable value.

The harsh reality? For most Salem business owners, up to 75% of their personal net worth is tied up in their business. Yet most have no idea what it's actually worth until they try to sell it – or worse, until health or circumstances force them to close.

Exit Planning IS Business Planning

Here's what might surprise you: exit planning isn't about leaving your business. It's about running it better today.

What makes a business valuable to a buyer? Strong financial systems. A team that can operate without the owner present. Documented processes. Recurring revenue. Customer diversity. These aren't just attractive to buyers; they're the hallmarks of a well-run company.

When you build your business like you're going to sell it tomorrow (even if you plan to work another 15 years), something remarkable happens: it becomes more profitable, less stressful, and ironically, more enjoyable to own.

The Hidden Value Drivers

Most West Salem business owners think their company's value comes from revenue or assets. But after years in exit planning, I can tell you the real value drivers that often surprise people:

• Your customer relationships: Are they transferable to a new owner?

• Your team: Do you have one? Can the business run without you for a month?

• Your systems: Are processes documented or locked in your head?

• Your finances: Do they clearly show the true profit potential?

• Your market position: What makes you irreplaceable in West Salem?

One Oregon manufacturer increased their valuation by 40% in 18 months just by documenting their processes and cross-training their team. They weren't planning to sell – they just wanted to take a real vacation. But those improvements made their business far more valuable when they eventually decided to transition.

The Million-Dollar Question

Here's a simple test: If you couldn't work for six months due to unexpected circumstances, what would happen to your business? Would it thrive, survive, or dive?

Your answer reveals everything about your company's real value – and whether you're building a sellable asset or just buying yourself a job.

The West Salem Opportunity

Despite the changes and challenges, West Salem remains a vibrant and growing business community. The businesses that are thriving aren't just surviving – they're building with the future in mind. They're creating operations that can succeed beyond the founder, systems that create consistent value, and cultures that attract both employees and buyers.

It's Never Too Early (But It Can Be Too Late)

The best time to start exit planning was five years ago. The second-best time is now. Whether you're 35 or 65, whether you plan to sell next year or never, building a business that can succeed without you is simply smart business.

Because here's the truth: even if you never sell, wouldn't you rather own a business that gives you freedom, runs smoothly, and generates reliable profit?

Take Action Today

Your business is likely your largest asset and your retirement plan rolled into one. In a changing West Salem, where longtime businesses are disappearing and new challenges emerge daily, knowing your company's true value – and how to maximize it – isn't just smart. It's essential.

Don't let your life's work become another West Salem "what happened to that place?" story. Start building transferable value today.

Corban Enns is a Certified Exit Planning Advisor (CEPA) and partner at Evergreen Business Advisors in Salem. For a complimentary business value assessment, contact him at corban@evergreen-ba.com.