Entrepreneurship presents numerous and constant challenges, but with hard work and dedication, comes many rewards. Being your own boss, setting your own schedule, and increasing your earnings are some of the rewards that come with the calculated risks you take every day for your business. But, the one risk you should never take is leaving the future of your business to chance.
- Do you have a plan?
- What will you do if you pass away or become incapacitated?
- Do you plan to have your business generate income for you to live on during retirement?
- Who is on your succession plan?
- Will your business have liquidity for estate taxes or to buy time?
- Will your family end up in business with your partners?
- Ready to sell? Great!... To whom? When? For how much?
Out of 2,800 family run businesses surveyed by Price Waterhouse Cooper in 2017, only 23% have a robust, documented succession plan in place. Even fewer than 2 years ago when 27% had such a plan!
It is never too early to make a succession plan. Building an exit strategy, planning for transition and transferring control to a trusted successor are all key parts of a successful succession plan. Creating a plan will provide you with long-term viability of the organization and leaving it stronger, more productive, and more valuable than it was before.
One of the biggest myths is that you don’t need a plan now. In reality, time is either your ally or your enemy. The reluctance to accept the realities of time can have disastrous consequences when the unexpected happens. The lesson here is to start early.
Download our free business succession planning report to learn about how you too can become a hero to your business by planning ahead!
Ready to build a team of trusted advisors? Click here to read our blog on The Entrepreneur’s Money Team: The 5 People You Want On Your Side When Building Your Advisory Team.