When is it time to step away from your business? Have you achieved all the goals you had in mind? Are you able to retire and pass the torch onto a trusted advisor? These are questions you may want to consider early on in your entrepreneurial career.
When business owners have less than a year to prepare for the sale or transition of their company, some decisions may be made hastily. By looking ahead, you can position your businesses correctly, find the best person to take over and train them appropriately. Whether you need to bring in a salesperson to attract new clientele, jump into a new market niche, cut down on your overhead or acquire another company, it is best to begin your initiatives now.
A corporation can survive without the original owner or founder if there are processes and details outlined in advance. This month, I will feature the questions you should ask yourself when putting together a succession plan.
Week 1 – How Much Are You Worth?
Owners pour their heart, soul, and all their resources into growing their business. This means that their company is going to be their biggest retirement asset.
The value of your business extends above and beyond your sales revenue. Many owners start their companies from scratch and work for decades to establish a successful operation. As a result, they need to do everything they can to protect the value of their brand and take care of their long-term relationships with their customers and clients.
The total value of your company is comprised of:
- Your company’s reputation
- Your employees’ capabilities and qualifications, and past performance
- Your advantages over competitors in key regions
- The profit contribution of your major clients to the firm
Planning is paramount for long-term financial security. At what age do you plan to transition your business to someone else?