It’s a good idea to start thinking about a succession plan long before you actually plan to exit your business. To do this, start by thinking through big picture questions about what you want for the company long term.
Knowing the direction you want to take your business in long term can help you with management decisions now. For instance, if you’re considering selling the company, you may invest in parts of the company that are most attractive to buyers.
A trusted team of financial professionals, including your accountant and lawyer, may be able to help you come up with a concrete succession plan based on your long-term goals.
It can take years to position your business for a possible sale. Even if you’re not set on a sale, have your business valued regularly so you know what to ask for and be ready to draft a buy and sell agreement for interested buyers.
Deciding what to do with your business takes a lot of planning. You may need to have multiple conversations with your family, as well as a team of trusted professionals. Ultimately, thinking ahead can make the process smoother for both you and your family.