Helping your business thrive after you leave will take planning.
You started your own business.
You sacrificed to build it from the ground up.
You have nurtured it and grown it.
Now you want to retire.
According to a recent Forbes article titled “Eight Factors To Consider Before Retiring From Your Business,” you need to do some groundwork to set your business up for success.
What does this entail?
You likely did this while building your business.
You had to be forward-thinking to be successful.
Business succession is now different, but the same.
You still need to begin with the end in mind, but the end is your eventual exit from your business.
Identify a successor.
Who do you want to take over the business?
Is a relative or an employee?
Either way, you should set them up for success.
Grant more responsibilities and mentor them as they face these new challenges.
Make your business sustainable.
You should design a business to be able to continue to thrive after you leave.
Ideally, you would have designed the business to continue without you way back when you first started your business.
If you did not, do not worry.
There is no time like the present.
Start now to implement an infrastructure that can survive without you.
Prepare an exit strategy.
Your business is your income.
Without panning properly, your income source could be at risk.
Work with a legal and financial team as you create an exit strategy.
Make an educated decision rather than an emotional one.
Keep working after you transfer control.
By staying on a few years, you will set your buyer or successor up for success.
This could help them grow and also structure better buyout terms for you.
What do these include?
Set up Standard Operating Procedures (SOPs) and Key Performance Indicators (KPIs) for company performance.
You should also clearly define who has the authority to make which decisions.
Clearly organize roles and responsibilities.
By taking these steps, you will be setting your business up for success.
Reference: Forbes (August 27, 2018) “Eight Factors To Consider Before Retiring From Your Business”