Tag: Business Succession Planning

In the fast-paced world of business ownership, it’s easy to get caught up in the day-to-day operations and forget about the future. Surprisingly, a staggering 79% of business owners find themselves in this very predicament, lacking a formal business succession plan. This oversight can lead to a cascade of challenges, akin to an hourglass slowly filling up with critical considerations.

Picture this: a business owner, weighed down by the looming uncertainties of succession, holding their head in distress. Time is running out, and without a clear plan, the sands of opportunity are slipping away. This scenario is all too common, and its repercussions are far-reaching.

Approaching succession without a well-thought-out strategy can result in a series of perilous outcomes. From a lower sale price to a prolonged transition period, increased costs, and heightened stress levels, the risks are numerous. Moreover, unprepared heirs and managers can further complicate an already intricate process, leaving the possibility of no sale at all.

But fear not, for there is a better way forward. Picture a different scene: a well-defined path through a maze, guided by a skilled hand. This represents the journey of creating a succession plan with the assistance of a seasoned Business Succession Professional.

Embarking on this path opens a world of opportunities. A larger pool of qualified buyers emerges, each eager to invest in the potential of your enterprise. The result? A higher sales price that reflects the true value of your hard work and dedication. As the sands of time continue to flow, costs are reduced, and flexibility in timing becomes a reality.

One of the most invaluable outcomes of this guided approach is the preparation of heirs and managers. They step into their roles with confidence and clarity, ensuring a smooth transition that safeguards the legacy you’ve built.

So, how do you begin this transformative journey? It’s as simple as opening the door to your ideal exit. This is not just our tagline, but a call to action. It’s an invitation to take control of your future, to shape the destiny of your business, and to secure your legacy.

In conclusion, the statistics speak for themselves – 79% of owners have no formal business succession plan. But you have the power to defy the odds, to rise above the uncertainty, and to forge a path that leads to a prosperous exit. With a Business Succession Professional as your guide, the possibilities are boundless. Don’t let time slip away; take the first step towards your ideal exit today.

It can be too late to start that planning, but never too early. Don’t run out of time!

Schedule a private call with Doug

Douglas Cook is a Certified Exit Planning Advisor (CEPA) and is the Senior Value Advisor at Headwaters Strategic Succession Consulting, LLC. He specializes in helping business owners formulate exit strategies while helping to increase the transferrable value of their companies.

In the words of Michael Jordan, “I’ve never lost a game. I just ran out of time.”

Business succession planning is a process that all business owners must undertake to ensure a smooth transition of ownership, and management, when they retire or become unable to continue in the business. Unfortunately, many avoid succession planning or cannot prioritize it because their business is running them.

Here are some reasons why starting succession planning early is critical:

Time is Your Ally

Succession planning involves identifying and grooming the right successor, developing a strong and sustainable business, and preparing for contingencies such as unexpected events or crises. All these elements take time to implement and refine. By starting early, business owners have the luxury of time to make informed decisions, test strategies, and adjust course as needed. They also have more options for potential successors to enable investment in their training and development, or more options for alignment of the business itself for the right segment of buyers. 

Uncertainty is Inevitable

Life is unpredictable, and unexpected events can happen at any time. Business owners who delay succession planning risk leaving their business and legacy to chance. Without a plan in place, the business may face legal, financial, and operational challenges that can erode its value and reputation. By starting early, business owners can prepare for various scenarios and create a roadmap that addresses potential risks and contingencies.

Succession is a Process, Not an Event

Succession planning is not a one-time event that happens when the business owner decides to retire or sell the business. It is a continuous process that involves ongoing evaluation, adjustment, and communication. By starting early, business owners can build a culture of succession that permeates the organization and ensures a smooth transition of leadership and ownership.

Succession Planning is Just Plain Good for Business

Succession planning is not just about preparing for retirement; it is also about building a stronger and more resilient business that can adapt to changing market conditions and opportunities. By starting early, business owners can develop a strategic plan that aligns with their goals and values, invest in infrastructure and technology, and build a team of talented employees who share their vision. They can also create a culture of innovation and continuous improvement that fosters growth and profitability.

In conclusion, Jordan’s sentiment holds true for business succession planning as well. Uncertainty virtually guarantees the end date and outcome will be less flexible and predictable than when one proactively chooses to start. Succession planning is a strategic imperative that helps ensure sustainability, longevity, and legacy.

It can be too late to start that planning, but never too early. Don’t run out of time!

Schedule a private call with Doug

Douglas Cook is a Certified Exit Planning Advisor (CEPA) and is the Senior Value Advisor at Headwaters Strategic Succession Consulting, LLC. He specializes in helping business owners formulate exit strategies while helping to increase the transferrable value of their companies.