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Succession: plan for the future so you can focus on today

Cape and Plymouth Business Magazine
October 31, 2017

By: Stephen Kelly

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As seen in the Cape & Plymouth Business Magazine

Small business owners face challenges on a day-to-day basis; daily business operations take priority for business owners, and less Immediate issues, like succession planning, fade into the background. 

As a business matures, and owners start thinking about retirement, they often realize that they lack a formal succession plan.   The fact of the matter is, owners should start succession planning early and periodically review and update for relevancy.

A proper succession plan typically starts with a disaster plan, detailing the owner’s wishes in the event they have an unexpected death or become permanently disabled.  This plan should include the options to:

  1. Sell the company to a strategic buyer or key employees;
  2. Wind down the business; or
  3. Transfer ownership or sell to a family member, with key management running the business, if necessary. 

Another important consideration is determining the value of the business, and having a periodic business valuation performed to determine the fair value of the company – often a business owner’s largest personal asset.  

Once you have a succession plan in place, you can plan for the future, while you focus on the daily obligations of running the business.