Do you have an exit strategy?
Do you know how you are going to exit your business? Continuing a business to the next generation requires planning. Whether you are planning to transfer shares to family members or a senior manager, a clear and well-thought-out succession plan paves the way for continued business success.
The problem is that many small business owners have no exit strategy for their businesses in the event of their disability, retirement or death. Why? Maybe because they think that they have plenty of time, or maybe they think it is just easier to sell the business rather than transition it to a successor. None of us have a crystal ball and, before you know it, the time to exit the business and enjoy the fruits of your labor will be here. Business succession planning, including considering who will own and operate the company, once you are no longer involved in the day-to-day operations is hard work and requires a great deal of time.
Start Planning Today
While each situation is different, most business owners will need to follow these five steps:
- Choose Your Successor
- Develop a Formal Training Plan for Your Successor
- Establish a Timetable for Your Succession
- Prepare Yourself for Retirement
- Install Your Successor
Business succession planning is a challenging task, but the reward is watching your business grow and succeed in the next generation. We can help you work on your succession plan, along with your accountant, investment or insurance professionals, and business coaches, to craft a plan that is just right for you.