Building a successful company involves years of dedication and hard work. Whether unfortunate or fortunate, you can’t work forever. As a business owner, you should have a clear succession plan in place before you consider retirement. It may be difficult to fathom giving up control of your company, but one day the time will come when you either pass on control to a family member or loved one or you decide to sell. A succession plan should not be left to the last minute because you can never predict what life is going to throw your way. Advanced planning will prove to be beneficial to everyone involved with your company.
Consult with Your Financial Advisor
Many small businesses are so caught up with their day-to-day business that they do not have a succession plan in place leaving their business vulnerable if disaster strikes and you are no longer able to run your company. The first step to creating a succession plan that works is to involve the help of a financial advisor. A financial advisor will be able to assess your business and guide you on the right path you desire for your succession plan, or help you plan one if you are unsure of what your plan should be.
Developing a Family Succession Plan
You can begin brainstorming what you ultimately want as your succession plan at any time. If you have someone in mind to take over the company once you are no longer in control, you should begin priming that person to do your job. Make sure that your company is going to be well taken care of by an informed successor by starting training early. It’s also important to be certain that who you have chosen as your successor is both willing and able to take the position. For instance, not all children wish to take over the family business even if it is somewhat expected of them. A serious conversation about the future is an important part for all of those involved in any succession plan.
Preparing Your Company for Sale
If your plan involves selling the company to an outside purchaser, you will want to prepare your company for sale. Just as you would do upgrades to a house to make it more appealing to a purchaser, the same idea should be done with your business. Ensure that your company is appealing by cracking down on overdue accounts receivables, having proper paperwork in organized order, and by doing everything possible to increase the value of your business. Your financial advisor can assist you in attracting a top buyer for your business when it’s time to sell.
Protect the legacy of your company with the same care that you put into building it. Create a succession plan, and let your financial advisor at The Beacon Group of Assante Financial Management Ltd. help you transition to the next stage of the journey.