Business owners spend so much of their time building their business that it’s become a way of life. Just walking away someday isn’t the easiest option for them.
Business Succession Planning
Most business owners still have goals and dreams tied up in the business even after they’ve decided to work less, pass the reins to someone else, or even just fully walk away.
In response to a 2008 PNC Wealth Management survey, Lander, J.D., L.L.M., a senior wealth planner and vice president of PNC Wealth Management stated, “Business owners who have put a lifetime into their work often have a mindset that ‘no one can run this business better than I can.’” That’s why it’s important to have a strategy in place ahead of time.
If you ask a group of business owners, many will indicate that they are interested in selling their businesses in five years. For some reason, it seems that five years is a very popular timeframe.
Questions to Ask Yourself
However, the real questions that must be asked of a business owner are:
- Are you ready?
- Do you have the correct people in place? Today? Down the road?
- Will there be a buyer in five years (or when you’re ready to sell)?
- Is the value realistic to fund your retirement years or your next endeavors from the sale?
Stillwater Business Financial Planning
The sooner the planning begins, the better I believe your results will be. Sometimes five years of planning might not be enough. Once the transitional plan is mapped out, the owner is able to still feel a degree of control and remain in the loop and at the helm to the extent that is specified during the planning process.
I’m ready! What’s the next step?