After much careful consideration and contemplation, you’ve decided you’d like to retire or move on to the next chapter. You want to transition your business either to sell to a third party, transfer ownership to a family member, start an ESOP (Employee Stock Option Plan) or sell your business to your employees and form a new CO-OP entity.
No matter which path you choose to take there are a number of DO’s you need to follow to prepare your company for transition.
Have an up to date real time financial accounting system
Clear out old obsolete inventory
Know the value each customer brings to you
Know who your top 20 Customers are and cultivate a better relationship with them
Know your competition what their strengths are and what their weaknesses are
Have a well-defined organizational chart
Have position descriptions for each employee
Have employee contracts.
Have many suppliers you can draw on
Have to wait months for a bookkeeper to know your financial picture
Keep Inventory no one will buy
Keep demanding customer’s that take up valuable resources and give you little or no return
Have no idea who your best Customers are
Think you have no competition
At Thrive Business Consulting it’s been our experience that most small businesses may never have had a firm foundation and have a crumbling foundation. We’ve found that you should allow 2 – 3 years to bring your business into the most optimum position for transition. Even if you are transferring to employees or a family member you need to give them the best footing you can so they can make the most of the incredible opportunity you are affording them.
You started this business and I know like most owners you want your legacy to continue and Thrive.
