ARE YOU READY TO TRANSITION YOUR BUSINESS? IS IT TIME TO MOVE ON TO THE NEXT CHAPTER?

April 16, 2021

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.

DO’S

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

 

DON’TS

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.