You’ve built a successful business through years of hard work. But how do you decide when is the right time to call it quits? Leaving your company and selling your business is a life milestone that profoundly affects your financial and emotional wellbeing. However, eventually circumstances may arise that indicate the time to leave has arrived. So what does a good succession plan look like, and how do you go about creating one?
#1. MOVE WITH THE TIMES
Technology, consumer tastes, and industry realignment can drive a once winning business formula into an untenable position. For example, your industry might have evolved to the point where only the biggest companies can compete. The trick to successfully selling your business is to do so before it loses profitability.
#2. DON’T FORGET YOUR HEALTH
Naturally, a major negative health event can be decisive. But you also must pay attention to deteriorating health conditions that may appear as you age. Exiting your company early gives you more control, compared with waiting until your health forces you to leave.
#3. KNOW WHEN TO QUIT
You’ve made a success of your business, but frankly, the challenge is gone. The world is full of new adventures and you can choose what to do next. You might take up a hobby, mentor others, join a foundation, or travel the world. If the business no longer gives you fulfillment, you just might want to find another way to enjoy your life.
#4. PROFITS = PROSPECTS
If you’ve nurtured your company into a strong position, you may be able to receive top dollar when you sell it. Or, if you want to pass it on to relatives, you have the peace of mind of knowing that they are inheriting a sound enterprise. After many years of toil and sweat, you might feel it’s time to finally reap the reward–a large nest egg or a family legacy.
#5. THINK AHEAD
The time to create a succession plan is well before your exit. I can guide you through the process and help you work toward your desired outcomes. Call or email me today and let’s get started putting plans together to pursue a graceful, and profitable, exit. Together we can make sure you are on track to enjoy life post-career.
Laryssa Freeman, CFP® is a member of the Fee-Only Network. She offers two options for new clients depending upon their needs:
1) Project-Based Financial Planning Service on a flat fee basis. The implementation of the plan is done by the client. The scope of work for the Project-Based Financial Planning Service may include the following topics based on the client’s needs: Retirement Planning, Estate Planning, Development of Financial Goals, Investment Analysis, Risk Management, College Planning and Tax Planning Strategies.
2) Comprehensive Financial Planning which includes all of the services above plus investment management and financial plan implementation by Meritage Wealth Management.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.