Although letting go can often be the hardest part, as a business owner, it’s never to early to start succession planning.
Instead of dwelling on how drastic your life will change when you retire or give up your business, it’s important to think ahead and be prepared. Strategic planning will allow you proper time to consider different approaches before passing your business on to new ownership or closing it.
Weigh your options
At some point you will leave your business, either by choice or natural causes. To create ease when the time for an inevitable transition comes, there are two options to consider beforehand:
- Sell your business: You can sell the business to an employee or family member that you trust or have a larger company acquire yours. You can sell it outright or through a transition over time.
- Liquidate your business: On the other hand, if keeping your legacy going in a business aspect is not a long-term goal, then you can consider shutting down your business. This can also happen over time or through a hard closure.
Plan your exit strategy
Coming up with a comprehensive exit plan takes time and there are a lot of moving parts to consider.
Whenever you start the process, these are some steps that may help prevent problems that could arise through the transition or after you are no longer in charge:
- Assign a small leadership team
- Meet with consultants to determine strengths and weaknesses of your company
- Create an implementation schedule
- Be sure to keep everyone who contributes to your business informed of your plan
The task of leaving or selling your business can seem daunting at first glance, but strategic planning can create a seamless transition for you and your employees.
