Long-term business success takes planning.
No business finds a magic formula for success.
Building a business takes hard work.
It takes dedication.
It takes careful planning.
According to a recent The San Antonio Business Journal article titled “Plan your exit even if you never plan to leave your business,” your business will not magically succeed after you die.
You will need to make plans.
Whatever your goals for your business, you probably want to keep as much money for your loved ones and yourself as you can.
How can exit planning help?
Let us say your business value increases.
Your estate could benefit from a step-up in basis should your business transfer according to your estate plan.
Creating an estate plan could also help you keep you from owing estate taxes.
By minimizing taxes, you will set your business up better financially after you are gone.
Planning can help protect your values.
You pride yourself in your work culture.
Your work is rooted in your character and your integrity.
You believe in what you do.
You support your community.
You value your employees.
Planning for your business succession can preserve your mission and protect your loyal employees after you are gone.
Planning can help grow your business.
You built your business.
You want to it to grow in value.
What if you hit a ceiling that keeps you from growing?
You will more likely do just that if you simply keep doing what you have always done.
An exit plan can help you focus on building the value of your business.
It will help you recognize the potential in your business and emphasize value drivers.
This will make it more attractive to potential buyers.
It will also allow you to focus on what you enjoy about the business and delegate other tasks to employees.
Exit planning is important to protecting you, your family, your business, and your employees.
Do not put this off.
Your business will not survive on luck or hope.
Reference: The San Antonio Business Journal (October 16, 2018) “Plan your exit even if you never plan to leave your business”