You may want to stay in your business for 5, 10, 20 or more years from now. But if adversity strikes or if you decide to embark on a new adventure, do you have a plan in place to help protect your business partners and family members?
Here are some things to consider:
If something happens to you, you might think your family would carry on the passion you put into your business. In many cases, family members may not have the qualifications or desire to continue running the business and your co-owners may not welcome the idea of an unintended partner.
Someday you may decide you’d like to retire, work fewer hours or sell the business. The questions you want to ask yourself about exiting or transferring your business include:
- Do you have a business succession plan?
- Do you know when you want to exit your business?
- Will you sell your business to a third party or a co-owner? Or maybe your children or other relatives?
- Do you know how much income you’ll need after you leave the business?
- Can you sell the business for enough to earn that income?
- Do you know what your business is worth?
75% of business owners don’t have an accurate idea of what their business is worth.
- BizEquity, 2016