The Transition to your Life Beyond Business™ requires your Attention NOW
You own a business and that business consumes most, if not all, of your time and attention. The
eventual sale or transfer of that business is a significant line item in your retirement plan, your Life Beyond Business.™
For a successful business transition you need to find the most effective way to maximize the value of your business and minimize the amount of taxes you pay.
It’s that simple…and that complicated!
I challenge you to define your personal vision for your Life Beyond Business.™
You can’t know how much you money you need from the transfer of your business if you don’t know what you want your Life Beyond Business™ to look like! You also need to build a solid foundation now to support the long term value of your business.
There is one final element to a successful transition, however.
You need to create a detailed plan to enable you to maximize the value of your business now so you can realize your dream tomorrow.
You need to identify those variables involved in your business transition and create a plan to address each effectively.
You get only one chance at this so you want to do it right. Exiting your business is a big deal, the biggest deal of your life and one that holds the key to your future personal and financial security. Remember, the sale or transfer of your business represents the monetization of your life’s work…your retirement.
So, what’s next?
It’s time to get down to the nitty-gritty; to begin the process of laying the groundwork NOW for your inevitable transition in the FUTURE.
Clarify Your Objectives.
When do you plan to transfer out of your business?
To whom do you expect to transfer your business?
How much money will you need to live your Life Beyond Business?™
Maximize and Protect Business Value.
You can increase the value of your business by focusing on those elements that give your business value; you’re unique “value drivers.” You must maximize those drivers, reduce your tax liabilities and protect the value of your business from creditors.
Ownership Transfer to Third Party.
Perhaps your best course is to sell to an individual, competitor, private equity or investor group. You need to determine how best to position your business for sale: define the process and identify the risks.
Ownership Transfer to Insider.
You may want to transfer your business to family or sell to a key employee or group of employees. What are the risks of transferring to those who don’t have the cash to buy?
Business Continuity Planning.
What happens to all these plans and to your business if you die or become disabled? How can you protect the value of your life’s work?
Personal Wealth and Estate Planning.
It is important to assemble a team of professional advisors who can coordinate your Business Transition Plan with your Estate Plan and Wealth Preservation plan for the beneficiaries of your estate.
There’s a lot to think about as you plan your transition from your business and many issues to address well before you have a buyer at the door.
The sooner you begin the process, the more time you have to make sure all the pieces are in place to ensure your successful exit from your business.
Many owners, working daily in their businesses, neglect to take the time to work on their businesses; to step back and assess where they want to be and how to get there.
When the time comes to consider their business transition, one comment I often hear is, “If I’d only known how difficult it would be to exit my business, I would have started the planning years ago.”