Owning a small business usually means taking on more risk than being an employee for someone else.
Small business owners are keenly aware of this risk. When thinking and planning for the future, they typically get advice from an accountant and/or a lawyer. While getting this advice is great, it’s generally focused on the business owner rather than the business.
Getting advice that is geared toward the long-term goals and interests of a small business is critical. It is important in order to make the business more valuable and, eventually, to get it ready for a transition to new ownership. There are a number of ways to move forward when it comes time for a small business to change hands. Understanding all of your options is an essential part of succession planning.
Small business owners may first think about passing their business on to their children, due to how heavily invested in the business the family is, whether or not they spend time working there. Individual family members may depend on the continued success of the business in order to afford their mortgage payments or put food on the table.
Despite knowing the great value of the business, children may still choose to take a different career path. And that’s ok – as the owner, it is your job to think about what the next steps are for your business, and that includes who will be running it one day.
Either way, succession is inevitable and it may not always come at the time you thought it would. Preparing early is key. By nurturing the business, you will build up its value and help ensure a smoother transition when the time comes.
I always say to begin with the end in mind. Be sure to think about what you really want for you, for your family, and for your business.
As a panelist at Ceridian’s March 21 webinar entitled Buying or Selling a Small Business? What You Need to Know, I can’t wait to share my knowledge about business transitions and succession planning with you. Register today!
Plus, stay tuned for a new series of blogs by myself and some of the other panelists where we will continue to share important information that will help your small business be set up for success, now and in the future.
The views, opinions and positions expressed by the author of this blog are personal and individual to him, and do not reflect the views, opinions or positions of Ceridian.