As any baby boomer in business knows, it is smart to think about what to do with your business “at the end.” What will you do when the day comes when you can’t manage your business any more? Now, I know lots of business owners running successful businesses into their 70s, 80s, even 90s. But it is a good idea to plan ahead.
Here are some thoughts from New Hampshire Business Review :
The purpose of “exit planning” is to maximize the value of your business when you leave, whether you leave it to family, or sell. Think of it this way: Your business has lots of value while you’re running it, but if you stop doing what you’re doing, you don’t want your family to be left with a useless business that has no value to them and which they can’t sell for a decent price or turn over to someone else to run. You also have a valuable retirement asset in that business. Walking away from it is a sure way to lose that value.
One consideration: What are you doing to “clone” yourself? Who could step in if you were disabled or sick for an extended period of time? What plans could you make for a smooth transition for someone else?
Sit down now and begin thinking about this. Seriously.
Tags: baby boomer, business, exit strategy, retirement
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