“Family businesses and their leaders are the ultimate entrepreneurs. They must continually innovate to grow and pass on a thriving business from one generation to the next. Our survey demonstrates how this entrepreneurial thinking across generations results in business success and strong family ties.” ~Carrie Hall, EY Americas Family Business Leader
Topics: family business planning, family business, business owner transition, business ownership, baby boomers, Family Business Exit, Family Business Transfer, business ownership transition, successsion
Richard was 64 years young and the CEO of a $10 million manufacturing company when we met him. He had been in business for over 30 years and he was confident that he could keep his customers happy and content even though his products were more expensive than those offered by his competition. As a result, he did not focus on keeping his raw material costs low or hire anyone to focus on marketing to attract new customers.
Bob owned and operated a profitable printing business for over 30 years. His son Jason was active in the business as the VP of sales and Bob had been grooming him to take over the company since he came on board about 3 years ago. Unfortunately Bob never really spoke to Jason about officially taking over and when Bob told him he intended to retire the following year due to health issues, Jason surprised him with a bombshell; he had no interest in taking over the company. He had only worked there to help his Dad out. In fact, he really didn’t enjoy the industry much and would be looking for a job elsewhere once his Dad retired.
Control as Deception
If you are considering selling your business, you need to consider your financial as well as non-financial goals including:
Have you developed a contingency plan for your business in case you die or become disabled? This is critically important. How many families and incomes would be affected if something happened to you tomorrow? How would your business function without you? Is there a written and realistic plan in place so that your management team and family could keep the business prospering?
Family business owners often think the internal transfer process will be an easy one and the pieces will just fall into place but usually find out quickly this is not the case. Working with an advisor who is uniquely trained in business ownership transfers can help guide you through the process of developing and implementing a successful internal transition plan. An advisor can help you to:
It's one of those subjects that many business owners would prefer not to think about: Business Transition Planning. If you talk to small business owners, many of them would probably say that they aren't planning on retiring because they need the income it provides them or they just enjoy working.
Creating Your Own Business Ownership Transition Plan - June 23, 2014
As a business owner, do you have a plan for how you will leave your business? Are you facing major business decisions, but not sure where to start? Join the Business Transition Academy for this free, informational webinar on June 23, 2014 from 3 PM to 4 PM EDT to learn more about our 2-day workshop for Business Owners.
Topics: business owner transition, business ownership, business planning, Business Transition Academy, Cashing out of your business: Your Last Great Deal, exit your business, free webinar, Jane Johnson, Kathleen Richardson-Mauro, sell your business, successful ownership transition, what every business owner needs to know