First Step: Know Your Goals
Knowing your goals is the first step to successfully transferring the ownership of your business.
David Wilton, Director of Small Business Banking at Scotiabank and co-author of Succession Planning Toolkit for Business Owners, says that retailers need to have a clear objective in mind before they put their business on the market.
And because the finances of so many small business owners is tied to their business, establishing a personal financial plan is imperative to be able to answer the question: What will I do with my business when I’m ready to retire?
"What small business owners want is a succession plan that
meshes with their personal long-term financial goals," says Wilton.
These personal long-term goals will determine whether you sell your business to an external buyer, groom a successor from your store ranks or pass the business on to your family. |
These goals are also integral to measuring the success of your planning. Wilton says a successful transfer helps you "achieve your personal goals to the greatest extent possible, given the realities [of the situation]."
Transferring Ownership
There are two factors to consider when selling a business: (1) the hard factors, the nuts-and-bolts of planning, executing and closing the sale; and (2) the soft factors, the emotions that inevitably become tied up in a small, family-owned business.
The Hard Factors
The advisers: Selling a business isn’t something you can do alone. Even if you're passing your business off to a loyal family member, seeking out appropriate advice will ensure you don't make mistakes or leave yourself vulnerable in some way. |
