It will take years to transition your business to the next generation or to prepare it and yourself for sale. When owners finally act on their exit plan, more years have passed. Meanwhile, the people involved are aging and getting closer to their next transition.
Business owners who are committed to a transition/ succession plan often want to give back and leave a legacy. When they take the time to think more broadly and long term about what’s next, the idea of giving something of enduring value — beyond their business — is important to them and to their family.
What’s the first step? There are ways to start planning for that right now.
First, seek out other business owners at networking events and peer-to-peer groups in order to begin a quality dialogue about transition steps.
Second, take time away from the business — it need to be a profitable concern that runs without you. It must have responsible managers who are capable of running it for at least short period of time. Use this time think about life without the business and what it means to you. Think broadly about what this change means to your family and employees.
Finally, gather input from trusted advisers to the business, such as financial planners, tax experts and exit planning advisers.
There’s more clarity and freedom when a person can look at the future phase of life by planning ahead. What business owners need now more than ever is a vision of the best paths for both themselves and their businesses.
Don’t delay — start thinking and talking about your exit planning options in a proactive, systematic manner without rushing to the market with a business that’s not ready for sale.
