When you are ready to retire, will your business be ready? Many small business owners look forward to retirement-to unplanned days and more time with loved ones-only to learn that their dreams are hindered by a lack of timely business succession planning.
This blog is the first-in a series of six-designed to help guide business owners through the succession planning process. As you move through these materials, keep these ideas in mind:
- Succession planning is all about matching your goals with the options available to you.
- Many business owners do not recognize the importance of starting early, sometimes as much as 10 or 15 years in advance.
- Seeking advice from a qualified, experienced attorney early can streamline the process and keep you on track to meeting your goals.
If you are looking for a transition plan template, you won't find one here. Transition planning does not lend itself to a one-size-fits-all approach. Rather, it entails making deliberate decisions that suit your business and are designed to maximize its value, allowing you to pursue your individual goals and leave your legacy in competent hands.
In this series, we'll cover five major topics that can help you get on the right track:
- Defining Your Goals and Starting the Business Succession Planning Process: How do you get started? It's critical that you first identify your goals and carefully consider other factors that influence when to begin.
- Deciding on the Type of Business Transition: Which type of transition is right for you? We'll give you an overview of the major types of business transitions, along with common advantages and disadvantages of each.
- Choosing and Grooming Potential Internal Successors: If you've decided that you want to pursue an internal transition, you'll need to identify potential successors. We'll provide you with some considerations that can help you do just that.
- Maximizing and Establishing the Value of Your Company before a Business Transition: Every business owner wants to extract value when transitioning away from his or her business interest. We'll outline concrete ideas on how you can maximize your company's value to meet your financial goals.
- Unlocking the Door to a Successful Business Transition with a Buy-Sell Agreement and Financing: Key to a successful business transition is working with a seasoned team of professionals who can help you meet your goals. The final blog in this series describes who those players are and how each fits into a successful transition plan.
Make sure your company is ready to transition when you are. Contact me today to get started on a custom business succession plan for you and your company. Just call (866) 617-4736 or complete our firm's Contact form. At Jenkins Fenstermaker, PLLC, we pride ourselves on helping business owners in West Virginia, Kentucky, and Ohio achieve their goals.