Your coaches describe the typical lifecycle of a successful small business.
Most successful businesses go through four stages: startup, growth, maturity, and transition.
That’s right. And the maturity stage of your business is an ideal time to start planning what you’ll do in the final transition stage. Will you close the business? Sell it? Pass it along to your children?
Whichever path you choose, it’s critical to start planning early. Surveys of financial planners, CPAs, and other business professionals have shown that it takes at least five years to create an effective business succession plan. Yet, only about 25% of all business owners do an adequate job.
And you’re probably very busy. Succession planning takes time you may feel you can’t spare. But when you consider all of the time, effort, and dollars you’ve contributed over the years, your business may be your largest single asset. By taking the time to determine your business’s future plan, you can maximize your return on investment.
Keep in mind that if you don’t take the time, you’re basically guaranteeing that someone else will make those decisions for you.
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