“If you fail to plan, you are planning to fail.” Benjamin Franklin
Do you have a succession plan?
This seems like so far in the future, but this is a very important question that you should deal with now. It can seem so unimportant when you are focusing on building your business. But even Benjamin Franklin knew the importance of planning in his quote above.
Some reasons you should start now are…
Successor preparation. There are certain things that will make a smooth transition that your successor should know. You want to prepare your successor to set them up for a successful transition and future.
Internal preparation. If you have your internal processes and procedures set up so that if you sell the new owner can come in with no disruption to the business, you will be able to receive a higher value for your company.
Determine financing options. The new buyer may not have the capital to purchase your company in cash, or they may not be able to obtain a loan. You may end up negotiating a buy-out, so in other words, be the financing company. This will take time to investigate and it is good to know your options in advance, this again can get you a higher dollar value for your company by offering flexible options like this.
In case of emergency. We never plan on anything happening to us, but in that case that something should happen, there needs to be a plan in place to look after your staff, clients, and families’ interests.
Until next time,