Women in Business
INSIGHTS e-News for Women in Business
Hear why it's important to get an independent assessment of your company's value, and what to expect during the process. more >
Listen to our Podcast
Math On-the-Go! Cards offer fun ways to explore math every day. Download for free on the PNC Grow Up Great(R) website more >
Are You Ready to Pass the Torch?
Choose more e-News Articles by Category
- Better Management
- Your Well-Being
- At Your Fingertips
Subscribe to Healthcare eNewsletters  Insights eNews
Get helpful articles like this sent automatically to your inbox every month.
Subscribe today
Insights Magazine
Business Insights for Women
PNC INSIGHTS Magazine Spring/Summer 2014 Issue
In-depth articles and tips
View Online
View / Print pdf

It's time to start thinking about how your business would fare without its key employee: you.

If you're like many business owners, you are the very foundation of your company's success--it simply couldn't work without you. And while this may be a well-deserved point of pride, it's not a great thing if you're looking to sell your company or are suddenly forced to step away.

You'd be forgiven to think that day will never come, but it's unwise not to plan for it. Without careful planning, your business could be left poorly managed under the control of family members or staff who are unable or unwilling to run it, or crippled by estate taxes. Here are a few ways you can help make the transition as smooth and painless as possible.

Groom Your Managers
Can you delegate your authority to a cadre of capable managers? If the answer is no, you'll need to groom not just your own successor, but also a team of executives capable of running the business on their own. Start by establishing clear guidelines for hiring and advancement, as well as mentoring programs to develop the next generation of leaders.

Make Your Staff Your Allies
If your best exit scenario is selling to an outside bidder, your staff is likely your biggest resource--all the more reason to make sure they're capable of performing well without your supervision, and that they feel fairly compensated. If a sale is in your future, keep your staff informed. The last thing a potential buyer wants to see is good talent jumping ship because of uncertainty. If you plan to sell to an insider or pass your business onto the next generation, the sooner you choose your successor, the better. But keep other scenarios in mind, just in case.

Plan Your Exit Strategy
According to Julie Gordon White, a certified business broker, member of the Women Presidents' Organization and author of Exit! 12 Steps to Sell Your Business for the Price You Deserve (exitjourney.com), a successful exit takes five years of planning: six months to complete an analysis of your strengths, weaknesses, opportunities and threats; 18 months to implement the findings; and three years to file profitable business tax returns.

Get Advice
Forge strong relationships with your financial advisor, attorney and accountant to determine the best plan of action to accomplish your preferred outcome. Seek out individuals or firms with specific expertise in business succession planning for privately held and family-owned companies.

Stay Focused
Continue running a tight ship; pare back expenses that might seem unnecessary to an outsider, and strive to hit your growth and profitability goals. Think of these strategies as revving up for the home stretch while making your business even more attractive to potential buyers.

It's never too early to plan your exit strategy, and the sooner you start, the greater your company's chance of success without you.

 


The article you read was prepared for general information purposes by McMurry. These articles are for general information purposes only and are not intended to provide legal, tax, accounting or financial advice. PNC urges its customers to do independent research and to consult with financial and legal professionals before making any financial decisions.These articles may provide reference to Internet sites as a convenience to our readers. While PNC endeavors to provide resources that are reputable and safe, we cannot be held responsible for the information, products, or services obtained on such sites and will not be liable for any damages arising from your access to such sites. The content, accuracy, opinions expressed, and links provided by these resources are not investigated, verified, monitored or endorsed by PNC.