Business succession planning is often a very involved and complex undertaking; achieving your goals often requires balancing different priorities that are often at cross purposes.
Exiting your business without a well thought-out succession plan is like entering a Formula One race without knowledge of the track. You may cross the succession finish line, but without thorough planning, you likely won’t take the checkered flag.
It's essential to think about your fully developed exit plan as a map to help you get to where you want to go. After all, your plan will help you reap the rewards of all the hard work you put into your business — and provide numerous benefits well in advance of a transition.
Exit planning can position you and your business for an optimal transition — whether you have a clear goal, are at a unique crossroads in your business or even if you have not yet begun to consider succession.
As you think about your business's succession plan, consider these 10 items when planning to transition your business:
- Begin with the destination.
- Determine how to exit your business.
- Position your business to obtain maximum valuation.
- Take control of your exit timing.
- Reduce post-sale litigation risk.
- Create opportunities for key management.
- Create employee incentives.
- Keep the business in the family.
- Avoid family conflict.
- Fulfill philanthropic goals.
Business succession planning is often a very involved and complex undertaking. Achieving your goals often requires balancing different priorities that are often at cross purposes.
However, through deliberate planning that incorporates your unique goals, needs and characteristics, you can set yourself up for ultimate success.
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