You can’t get anywhere if you don’t know where you’re going. It’s also obvious that once you know where you’re going, you need to lay out a path that will take you there. But things that are obvious are not always easy. It can be helpful to adopt a process that is customized to your needs but is based on an approach that has worked for others in the past.
Nadir Chandra’s story was typical of most business owners who have made the tough decision to leave their companies. At age 54, he was confident in finding a meaningful second act and was ready to leave his 25-employee commercial sign-making business. Nadir was thinking of selling to one or two of his key employees and when we met him his first question was: "Is this the right choice for me and my business?"
Many of you find yourselves in the same predicament. You are able to envision your life beyond business ownership, but you don’t have a clear picture of how to transition your business to the successor you choose, for the money you want and on your timeline. So, what do you and the Nadir Chandras of the world do?
Here is what we told Nadir:
First, understand that leaving your company is a process. Realizing that life after leaving your business can be as fulfilling as your life as a successful owner is simply the first step. The next step is to figure out a way to approach your transition in a methodical, logical, and rational manner. Most owners do not put enough thought and planning into their future ownership transitions. Often, they believe there are systems in place that will take care of everything when they decide they are ready. Maybe, they believe they’ll figure it out when they get there.
If that describes your situation, you are not alone. Most owners, and their advisors for that matter, don’t know there is a planning and implementation process that is methodical, rational, and can be tailored to your unique goals.
Setting goals and objectives, while also understanding the value of your business, are the first steps towards planning for your future. Based upon what you want and what you have, you can then examine and choose a proper path for you: be it a sale to a third party, a transfer to children, a sale to an Employee Stock Ownership Plan (ESOP), a sale to a co-owner, or retaining ownership of your business until the very end. As part of this process, you also must consider what would happen to the business and to your family in the event your death or disability precedes your "best outcome" plan.
Simply knowing the process and proceeding down the path to part with your business, however, is insufficient. If you can’t describe how you’re going to get there, is it likely you’ll reach your destination? To promote success, you need a written plan that:
Avelo Plans New Florida Nonstops Out Of ILM
Miriah Hamrick - Mar 30, 2023
Wawa Gas Station Proposal On City Planning Agenda
Staff Reports - Mar 30, 2023
Despite Banking Headwinds, NCino Reports Steady Growth In Sales
Jenny Callison - Mar 29, 2023
Riverfront Farmers’ Market Returns To Dock Street For 20th Season
Miriah Hamrick - Mar 29, 2023
Tech Roundup: New Software Platforms, STEM-ILM Event And Tech Awards Deadline
Johanna Cano - Mar 29, 2023
Brunswick County property owners have received their new tax values as a result of this year’s required revaluation process....
Doug Hamerski is a nephrologist who likes to spend his free time on other sciences, from circuity to radio. This pastime has now grown to a...
Book and media recommendations from Info Junkie Hoop Morgan, founder of The Forte Institute....
The 2023 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.