Do you want to partially retire but retain control over the business?
Do you want the business to continue growing profits and value.
Did you know that
- the average age of a small business owner is 56
- 20% of business owners are over the age of 65
- 11% of business owners are over the age of 70
- 44% will sell their business in the next 10 years
- 50% of business owners expect the sale of thier business to fund their retirement.
In the next 10 years if you want to partially retire and retain control over the business. And want the business to continue growing profits value in your absence?
Then you need a succession plan! An effective succession plan should give you:
- Motivated staff growing profits and value?
- Time away knowing staff is committed to the business?
- A future buyer before you sell?
As you can see, succession planning is more than just selling your business.
Why is succession planning important?
Succession is the transfer of ownership and/or management of a business. It is important for people in business who are relying on the sale of their business to fund their retirement.
Whilst most business owners recognise the need for succession planning, and while many include selling the business for the best price as part of their retirement plans, only 22.7% have a documented plan!
Source: Australian Family and Private Businesses Survey 2005
Warning – In the future, getting the price you want at the time you want may become increasingly difficult with many more businesses for sale and fewer qualified willing buyers. Don’t make the mistake of leaving succession planning until it’s too late.
Before selling your business, you need to be aware of the 7 different exit options prior to making your succession planning decision. Your business succession plan needs to compare the benefits of each option so you can choose the strategy that gives you and your family optimal financial and lifestyle benefits.
With an effective succession plan, you will have peace of mind from knowing you have a committed future buyer and your staff are dedicated to the business.
Make the right choice. Be in control and don’t have your succession decision imposed upon you. Exit your business on your terms and in your time.
Are you a business owner who is ……
- Relying on the sale of your business to fund part or all of your retirement or wishing to improve your work-life balance?
- Wanting to exit your business in the next 10 years?
- Wanting to sell part of the business to family or key staff?
- Planning to enter into or currently in partnership with other business owners?
- Need to update your business ownership agreements?
- Planning to sell part of your business to family or staff once they achieve their performance criteria? Need to formalise and document these arrangements?
- Reached agreement with staff who are ready to own part of the business? Need to formalise and document these arrangements?
Contact Us For a Free Succession & Transition Assessment