As baby boomer small business owners across North America approach retirement, many are left with the daunting task of preparing for a business transition. Unfortunately, only about a quarter of these business owners have a plan in place, leaving the rest to face the reality of their eventual demise without any preparation. This is where the professionals come in.
Business coaches, bankers, lawyers, accountants, insurance agents and wealth management advisors can be of great help to these business owners, providing the necessary guidance to put together a succession plan. With their help, business owners can ensure that their legacy is in the right hands and that their hard work and dedication is rewarded in the end.
Creating a succession plan for a small business requires time and effort, but it is essential in order to ensure a successful transition. It is important to remember that this is a long-term process that starts with the initial planning and continues through the implementation and evaluation of the plan. The business owner should consider their goals and objectives, the number of potential successors, the type of transition (sale, transfer to family, etc.), and the operational and financial elements of the business.
It is also important to be mindful of the personal impact of not having a plan in place. Without a succession plan, the business owner may end up having to close the business, sell it for less than its true value, or even leave it in the hands of someone who is not prepared to take it on. These scenarios could have a significant impact on the business owner’s financial security, not to mention the emotional impact of leaving behind a business that was created from hard work and dedication.
The key to avoiding these outcomes is to start the succession planning process as early as possible. This will give the business owner enough time to prepare the business for transition and ensure that it is in the best shape possible. It is also important to get help from the right professionals to ensure that the transition goes as smoothly as possible.
By being proactive, baby boomer small business owners can ensure a successful business transition and create a lasting legacy. With the right professionals in place and the proper planning, they can ensure that their hard work and dedication will be rewarded in the end.
Please reach out if we can help prepare your business for the future: paul@thebusinesstherapist.com
