Building a successful small business is somewhat like being a parent. You start with an infant enterprise that needs constant attention and often deprives you of sleep. You foster it through various stages of growth, including some rocky times, and enjoy seeing it become able to stand on its own. And eventually, you may rely on it to carry on your legacy and take care of you financially.
Making that transition from taking care of your business to having the business take care of you is the purpose of succession planning, which helps ensure the orderly transfer of a business to the next generation.
A succession plan is especially important if you want the business to continue beyond your career or your lifetime. It also matters if you need to monetize your investment by selling the business. It's not a given that these two issues are important to every owner.
The first step in a succession plan, then, is to figure out what you want for and from your business in the long term. Is your goal to pass it on to later generations within the family or current employees? Will you search for new ownership from outside the company? Can your buyers pay cash, or will you need to finance a portion of the sale? Do you need the sale proceeds to fund your retirement, or would you like to structure the sale to leave a financial legacy for your heirs?
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KAHLER: When you retire, business needs a succession plan:
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
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