When it comes to planning for the future of your family business, do the hard math. Some day you are not going to be there to run it. It is just a matter of time.
Unfortunately, there may simply be no capable family member there to step up to the task, which is something even further from your control. For many a business, and for the betterment of the family, this means a sale.
It is, indeed, a hard math, and not something that comes easy to most of us. Nor does selling the business you worked so hard to create. Nevertheless, when so much of the family wealth is locked into the business, be sure to consider proven, practical tips for preparing it for a sale.
To get you started, consider a recent Forbes article titled “10 Simple Tips To Make Your Business Acquirable”
The problem shared by most sales is that a business is only valuable if it is “acquirable.” The 10 tips largely speak for themselves, but you will want to read the description of each in the original article.
Here are the Forbes 10 "Tips" for selling your business:
1. Check Your Ego
2. Be Irrelevant [aka, do not personally be the “value” to the business]
3. Become Known
4. Develop Great Systems
5. Clean Up the Financials
6. Make a Profit
7. Develop Reasonable Expectations
8. Focus on Continuity
9. Be Transparent
10. Maintain Perspective
Remember: selling the business is a crucial to your own retirement and the future of your family. Approach the process realistically and early.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri) and to download free tools to help you organize your estate, visit my estate planning website.
Reference: Forbes (November 13, 2013) “10 Simple Tips To Make Your Business Acquirable”