One in three business owners are age 55 or above. This means that about 33% of business owners are nearing or at retirement age. What does this have to do with RISK? Well, allow us to present questions and have you look at your business.
– Do you have a formal perpetuation plan in place?
– Have you begun training & mentoring for the future owners?
– Do you have succession plans for the best people (non-owners) in your business?
– What type of risk does your business face if YOUR best clients do not have a perpetuation plan in place?
– How would a lack of planning effect your clients, employees, profits?
– How much money &/or value would procrastination cost you?
– What if something happened to one of your key partners tomorrow?
Typically organizations wait until it’s time to sell (or so they think) before ever addressing succession planning. Sukay & Associates, developed a list of “The 10 Worst Reasons to Sell Your Company” based on their experiences with potential clients. At first, this will appear to be a list of Reasons TO SELL Your Company. Many organizations face one or many of these issues; however, any one of these issues will impact the level of interest of another party or reduce the value of the company. Some of these issues can be fixed, but it takes time and effort to address these issues. Many of their clients try to address these issues right before they sell their business. The reality is that many of these issues can’t be altered. As an example, it is hard to make ourselves any younger.
Here is the dilemma: Should you sell your company because of these issues or should you fix the ones you can before you try to sell? Here is the one thing that is for certain. If you don’t have the passion or the time to fix your issues, then why would you wait?
If you or your clients are thinking about selling, then download our whitepaper by simply filling in the form below. It may change your mind.
