This is Key #6 of the Six Keys to Maximizing Wealth for Small Business Owners-Business Succession Planning. This is the last article in the six part series. It may just be the most important one of all. Read on for some critical info.
Someday you may want to sell your business or pass it on to a family member, employee or another organization. It is critical that you develop a detailed succession plan that meets your business and personal needs.
Typically the business is the largest asset in the owner’s estate, and without a succession plan it is unlikely that your business will survive to the next generation or sell for its true value.
If you’ve yet to give a thought to succession planning, or if you’ve simply been putting if off while you concentrate on more pressing things, make sure you avoid these six mistakes. By steering clear of these bad boys, your business should in good shape.
There are six business succession mistakes to avoid:
Procrastinating. Succession planning requires laying down ground work over many years, some experts have suggested you start your exit strategy the day you start your business. How you want to exit the business someday determines how you structure the business today.
Assuming the children will take over the business. Have a discussion with your children. Determine what they really want to do. Find out their desires as soon as possible. That way you can pursue other avenues for your exit, such as selling to another employee or partner, or to an outside buyer.
You know the drill. To get all six business succession mistakes to avoid, you have to download my eBook Six Keys to Maximizing Wealth for Small Business Owners today. Following the 6 Keys will help put you on a path to success, so why not start now?