In days gone by, business succession was often a simple matter. The doting father would hand the keys to an adoring son, and everyone would live happily ever after. Reality isn’t quite that simple. What happens to your business after you step away will have much to do with the decisions you make now and the plans you put in place. Here are some of the questions you’ll want to weigh throughout the process of planning your succession.
Sell Off or Pass On?
Providing your business has sufficient value and assuming there are potential buyers, selling your business is always an option. A Certified Public Accountant (CPA) can help you determine the value of your business. However, this option won’t always provide your employees with a great deal of stability. If you don’t want to sell, you’ll need to find the right person or people to take the helm in your absence.
Are You Ready to Retire?
Many business owners find it difficult to walk away from their company even after they’ve passed ownership and management to a new regime. If you feel it important to remain as a consultant, advisor or figurehead, make it clear to potential successors.
Do You Need Help Appointing a Successor?
Making the decision on your own is certainly your prerogative. But seeking counsel is always an option. Whether you form an informal committee or hire a specialized firm to help identify future leaders, input is always available even if you retain the right to make a final decision.
In addition to choosing a successor, there are numerous other decisions that need to be made with a great deal of care. Speak with a business advisor with experience in this area to ensure a smooth transition.
When Should I Start the Process?
You should start planning for succession long before it’s necessary. Once a plan is in place, it can always be altered to match current needs.
Succession planning is an important part of your greater retirement plan. If you need help with any aspect of your retirement or business succession planning, start the conversation today with a representative from Community Wealth Advisors.