Transition Readiness and Life After Business
It is never too early to start thinking about business ownership transition, but in order to do so, you have to have a plan. What will happen to your business? Have you saved enough outside the business when added to the proceeds of your business ownership transition will provide you lifetime financial security? If answered early, these questions will help make your shift to life after business smooth. It is important NOT to take the, “I have plenty of time,” attitude, because the truth is we never know what the future has in store for us. Here are a few helpful tips to help you start the process.
An ownership transition strategy is a written plan that lays out what will happen to your business once you become less involved or decide to leave the business. Will you sell the business or transfer it to a successor? In any event, you must be ready.
- Begin planning your exit early: We know we keep beating this drum, but its importance merits the repetition.
- Create a financial exit goal: To exit comfortably, what price do you need to realize from your business?
- Get your company growth plan in place: You’ve put all the sweat equity in, now make sure you leave the company in a good place. Are the best leaders in place to help the business continue its success?
- Review your buy-sell agreement: If you do not have a sole ownership, you should have a buy-sell agreement in writing to help with the transition. Review and follow to help minimize any potential disruption or controversy.
Life After Business
Many owners regret exiting their business because they do not have a well thought out life after business plan. While leisure time sounds nice in the beginning, you may find yourself becoming board quickly. Being carefully planned will give you clear direction and purpose to your life after business. In planning your life after business strategy you need a well thought out investment plan to ensure financial security.
To find out what plan would be best for you, contact one of our advisors today and let’s get started!
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