Do you have an exit strategy/succession plan for your business?
That is a question which is not usually top-of-mind for a business owner.
Entrepreneurs are good at a lot of things, but the day-to-day demands of running their enterprise preclude them from thinking carefully about an eventual exit plan. While most business owners know they should have a plan, it continues to get pushed to the bottom of the priority list. That is understandable but it is clearly something that should not be ignored.
Succession planning is not difficult if you have the right expertise to guide you along the way. There are industry experts who can highlight the reasons why an exit strategy/succession plan should be in place and offer advice on how to go about it, including how to minimize taxes.
The most common scenarios for ownership transfer are:
- Selling to a family member.
- Selling the business to employees.
- Selling to a business partner.
- Selling to a competitor. In some cases, you might be responding to an unsolicited offer.
- Retaining the services of a selling broker.
Planning a successful exit includes:
- Identifying a successor.
- Establishing a timeline.
- Creating an exit strategy.
- Developing a written succession plan.
- Starting the exit strategy.
There are various succession-planning checklists out there and numerous experts in the field who can help in the process. The key is to be organized and have a detailed, timeline-driven plan which also allows the new owner time to get their necessary plans and strategies in place. You don’t have to go it alone, but you can’t afford to ignore the issue. This is now on the radar of most financial institutions.
You have built a successful business and you must have a plan in place that ensures not only its continued success but also a smooth transition into retirement for you.
Want to know more? Contact me today!