You have probably heard this Chinese proverb: “The best time to plant a tree was 20 years ago. The second best time is now.”
The same goes for planning the succession plan for your small business.
Business owners spend a lot of time building their companies, and as a result, they sometimes overlook an important detail: the future. Have you considered what will happen to your firm when you retire? Or, heaven forbid, you are forced to exit due to health issues or even death? Your family and employees depend on your business being around.
Small companies are especially susceptible to diminished value or even failure when the driving force, you, step away. As a result, it’s critical to take action now to guarantee future success.
If you think it’s time to sell your company, consider the following: You can pass on the baton to future generations.
If you have older children interested in your firm, start educating them about leadership opportunities and exposing them to all parts of the business. Please make a point of discussing your objectives and corporate philosophy with them early on. You can include them on business trips and conferences. Start introducing them to key customers so new relationships can be forged.
If your children aren’t interested in taking the wheel, you may sell your firm as an alternative.
Whether it’s a digital presence or a traditional business, there is almost always someone who wants to buy a successful company that is well-branded and attracts loyal clients.
Businesses that can operate independently of the owner receive a higher price, as do web-based eCommerce enterprises.
So make sure your management team is fully functional, and your website is well designed and user-friendly.
Whether you’re handing over the reins to the next generation or selling, your succession planning should begin with a thorough market analysis. To determine the actual market value of your company, you must be able to predict what your industry – and yourself – will look like in ten to twenty years.
Most importantly, try to be objective and remove your emotions from any major decisions. Enlisting professionals can help you make intelligent, emotionless decisions.
So, if you haven’t finished your succession plan, today is a great day to start!
Thanks for reading and thinking for yourself!
Russell Anderson
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P.S. I appreciate and respect your investment of precious time to read my work! That’s why I strive to provide thought-worthy content that generates a worthwhile return on your investment.