The extent you need to plan for your business transition depends on if you want to completely let go of your business. If you want to Transitioning an element of control while not being involved in the day to day operations.
Transitioning the operations of the business
You might want to retain ownership of your business without involved in the day to day operations. You need the flexibility of being anywhere in the world only checking in occasionally to see how the business is doing. If this is the case then start working on the following before you leave the business:
Appoint a successor
Look for the person you will like to take over your business and start developing this person’s skills. I have seen business owners suddenly decide there burnt out and stop actively showing up in the business. This leaves their employees with no sense of direction. In circumstances like this, the manager’s job transitions to putting out one fire after the other. Take the time to groom your successor for success.
You need the flexibility of being anywhere in the world only checking in occasionally to see how the business is doing. If this is the case then start working on the following before you leave the business:
Transitioning Standardize your processes
Standardize your processes so consistent results can produce even when you gone. The areas of your businesses that need standardization are as follows:
Financial
Forecast and budgets
Key performance indicators
Operations
Company History and Vision
Human Resources
Innovation
Information technology
Marketing
Brand recognition
Product/ service differentiation
A growing market base
A proven sales and marketing process
Customer retention strategy
Formulate a strategy for personal income after exit
Some ways to take money out are Transitioning:
Fund retirement through the business
Lease your building to your business and get paid rent
Get paid dividends or distributions depending on corporate structure
You want to make sure you are financial independent after you leave. If the main source of your retirement income comes from your business, then be very careful to plan you have enough income to supply your needs.
Transitioning for the transfer of the entire business
Some entrepreneurs want to completely walk out of the business. This can achieve selling the business. Selling the business has the advantage of exiting with a lump sum which can invested in other assets. If you plan to exit your business by selling it, then start prepping the business for sale about 2-5 years in advance. Follow the following steps:
You need the flexibility of being anywhere in the world only checking in occasionally to see how the business is doing. If this is the case then start working on the following before you leave the business:
Transitioning Value your business
Perform a gap analysis: this is the difference between what your business values at and what you could potentially sell for Hire. A team of experts to help you fill the gap before selling. You need the flexibility of being anywhere in the world only checking in occasionally to see how the business is doing. If this is the case then start working on the following before you leave the business:
In summary, most entrepreneurs do not think of exit until they are completely burnt out. Waiting this long to think about it means you will not get the best value for your business.
