Monday, August 06, 2007

Business Owners - Don't Fail to Plan

Category: Business Law and Planning

It is a truism that "Business owners often feel that they -- and the business -- will always be around. But without some thoughtful planning about succession, it's common that businesses wither when the owner passes away or leaves."



In Keep Business Alive With Succession Plan from the Small Talk Column of WSJ Online, the author highlights "four steps to making sure your business lives beyond you." These are common-sense concepts to spur you to action. Some key points to consider:



* You need to have a plan as to what will happen to your business if you get hit by a bus.

* Your plan needs to be in writing

* Know who your successors are let them know so you can groom them to succeed

* Be able to finance your succession, whether through a buy-sell agreement, life insurance, etc.



Another truism all business owners should consider: Nobody plans to fail, just fails to plan.





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1 Comments:

At 9/13/2007 6:08 PM, Blogger Anthony Lorizio said...

Oh how wonderful to hear another voice out of the darkness supporting the need and value of exit planning.

I am in communication on a regular basis with private company owners who,while brilliant in their sectors, are in denial about the need and value of creating an exit strategy business plan. The plan will both get them out of the business and give them the advantage in the process of garnering the best price, terms and conditions from the private capital market.

We preach a holistic approach to the exit process. That is to say a plan should include personal and business goals. In that way it can be less of an emotional strain. If you do not get a map when you go on a trip to a new land, you get lost.

Thanks for this fine article. I'll be watching for more. You can find me at www.hamiltonwright.com

Thanks again,

Anthony Lorizio

 

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