Top 5 Consequences of Not Preparing Your Business Transition Plan
By Kathleen Richardson-Mauro, Business Transition Academy, Inc. Business owners are often too focused on day-to-day challenges to plan for the eventual transfer of their businesses. This lack of planning can jeopardize the future of their companies as well as the financial security of their families. Below are the top 5 consequences of not preparing a Business Ownership Transition Plan or BOTP as we call it.- Not Being Able to Afford to Sell Your Business and Retire – Most business owners don’t realize just how much money they will need to net from their sale to accomplish their financial goals.
- Limited Business Transition Options – Last minute transitions driven by burn-out or untimely events such as disability, illness, or death can be damaging to the business and limit the options.
- Not Being Able to Keep the Family in the Business – Countless family businesses have fallen apart or had to be sold because of this lack of planning.
- Being Taken Advantage of by Unscrupulous Potential Buyers – Business owners often think that the sales process is all about waiting for someone to approach them and then just completing a bunch of paperwork to close the deal.
- Not Being Mentally Ready to Leave Your Business — Owners need to determine how to extract themselves from the business and what they will do after stepping away.
You can see more from Kathleen at FABTECH in Session F73:Exit and Succession Planning for Business Owners on Wednesday, Nov. 11: 8 – 10 AM . Learn more here. As trusted business advisors, and authors of the book “Cashing Out of Your Business: Your Last Great Deal“, Jane Johnson and Kathleen Richardson-Mauro will help you achieve your goals and maximize value when transitioning out of your business and into the next stage of your life. We’ve developed an effective, turnkey, 6-step business and transition planning process to ensure a smooth transition. We’ve developed Business Transition Academy to provide business owners with a wealth of information to get them prepared for a business transition. Review our testimonials, read our business owner resources, and contact us today to learn how we can help you make informed decisions to achieve superior results.