Do You Have A Written Transition Plan?

A couple of weeks ago I wrote about “5 things you should know or have completed prior to considering the sale or transfer of your business.”

I will explore each of these in more detail over the next several weeks.

👉 HAVE A WRITTEN TRANSITION PLAN

Leaving your business requires a commitment to both a physical as well as an emotional separation.  You may have been building your business for 10 years, 30 years, or it could have been in the family for a generation or more.  Whatever your tenure, you have doubtless built a strong connection with your business, with your employees, your customers and even your vendors.  You may even look at the business as defining you in some way.  Leaving it is going to be a difficult process.  Not only for you but likely for your spouse, partner or significant other as well. 

In order to have a “happy exit” it is in your best interests to have a well thought out and documented transition plan, irrespective of whether you are just starting out, or have already been in business for years. 

There is plenty of literature about the fact that written plans have more chance of success than ones that are not written down.  Your plan should highlight when and how you wish to exit.  Will it be immediate or over time?  How much money are you expecting to make?  What are your plans for investing the proceeds? How will your employees and their families be impacted?  What are the tax consequences? What will you do with the extra time in your future?  The mere process of considering these things will bring a degree of comfort regarding your readiness to leave the business.  Many business transitions fail due to the business owners backing out, not because of anything financial, or something discovered during due diligence, but because they decide they really weren’t ready to move on.

DO YOU HAVE A WRITTEN TRANSITION PLAN ❓❓❓