It’s Never Too Soon to Start Planning for Your Succession Business Succession Planning
Business owners spend so much time establishing and building their businesses, they often forget one crucial factor: The Future.
Have you thought about what will happen to your company when you retire?
Small businesses are quite vulnerable when the main operator steps down and Business Succession Planning is a necessity.
That is why it’s so important for business owners to take action in advance, so when the time comes, they can leave the business by turning it over to a family member or cash out and retire without any hassle.
For those of you who want to pass on your business to the next generation, here are two things you should do immediately to get your Business Succession Planning underway if you haven’t already begun to do so.
- You need to begin grooming the successors now for the leadership role and expose them to every aspect of the business.
- Be sure to discuss your goals and business philosophy with them early on and introduce them to the industry by including them on business trips and at conferences.
If your children aren’t interested in taking the reins, the alternative is selling out.
No matter what type of business you are in, there is a buyer out there someplace.There is always a buyer looking for a successful organization that is well branded, has cash flow, attracts and retains a loyal clientele, and has operating systems and management in place.
In both cases, your Business Succession Planning should start with a comprehensive evaluation of the marketplace.
To put a realistic, fair and reasonable value on your business, you should be able to forecast what your industry – and your company – will look like in 3, 5 and 10 years.
Most important, try to be objective and remove your emotions from any major decisions. Enlist professionals so that these decisions are made for solid business reasons, not emotional ones.
We have Business Succession Planning Specialists in our office. Give a call and discuss your Business Succession Plan today.