When Is The Right Time To Start Thinking About Business Transition Planning?
At some point, all businesses will need to transition due to choice, opportunity, or necessity. However, many small business owners in Boone County have yet to think about their business transition plans.
When starting a business, owners are mostly thinking about the beginning and how to grow and sustain throughout the years. But in reality, from day one, owners should also be thinking about their business transition plan and how to set themselves up for success when the day comes to move on to the next chapter.
But it’s not too late to start. Let’s discuss the right time to start business transition planning and how BCDA can help during this process.
When to Start Business Transition Planning
It’s never too soon to start thinking about how you will transition your business. You should have an idea in mind about your exit strategy when you start your business.
If you haven’t thought about how you will transition your business before, now is the time to start. It’s not ideal to wait until you are ready to retire to start the business transition planning process.
For business owners nearing retirement, it’s essential to start planning for transition immediately. Proper planning can take up to five years to get your business ready for a successful transition.
Why Is Business Transition Planning So Important?
As a business owner, you have worked hard for decades to build a reputable, successful business for yourself, your family and your community. Without a business transition plan, there’s a chance you might have to just close up shop when you are ready to move on to the next chapter because your business does not appear lucrative on paper.
Business transition planning helps you prepare your business to be sold in a way that leaves both the buyer and seller satisfied.
Some things to think about are:
- How you want to leave your business.
- What makes your business enticing to potential buyers.
- Are you planning for taxes or planning for value?
- How to increase the value of your business before you leave.
- Who you will need on your business value and transition team.
- How long does an exit take?
- How does “Life After Business” affect exit planning?
How Can BCDA help?
Together with the Nebraska Business Development Center (NBDC), BCDA is hosting a free information session on March 9th for all Boone County business owners who are interested in creating a business transition plan.
This session is the first step in a four-step Business Value and Transition program that BCDA has recently implemented to help guide small business owners in our community to a smooth business transition.
If you are interested in attending this info session, please register by March 6th to reserve your spot. If you are unable to attend that date or have any questions about business transition planning, get in touch with our office.