There are many ways to put your family business in the hands of successors: sales of equity or assets, gifts of equity or assets, or some combination of these. There are pros and cons to every method and gaining clarity about which is best for your situation begins with answering five of The Big 6™ questions that come before the question of How will your transition your family business to successors? They are: Why? What? Who? When? How Much? How? All six questions are interrelated. For example, the timing you
One of the ways we help owners lay the foundation for a succession plan that achieves their objectives is a tool we call The Big 6™. When owners answer these six questions, they begin to chart a path to the transition they desire. The Big 6 questions are: Why, What, Who, When, How Much, and How. (Click here to read more about the questions.) When is the best time to start planning a family business transition? SCHEDULE A COMPLIMENTARY CONSULTATION Today the topic — or the question — is When.
As we near the end of the year, we’ve been thinking a lot about all that’s happening in our world: two wars, presidential primaries just weeks away, periodic and predictable wrangling in Congress about the national budget, questions about the potential of artificial intelligence, the teeter-totter of will-there-or-won’t-there be a recession, inflation, and interest rates. We don’t know what 2024 will bring, but we do know that it will bring more of the same: constant change. SCHEDULE A COMPLIMENTARY CONSULTATION Yet, two issues in our world of business transitions continue
We’ve all heard the term “codependency.” It describes an unequal and dysfunctional relationship between two people in which one person gives and gives, and the other takes and takes. In the business transition world, we see mutual dependence: a dynamic between owners and their businesses that is not characterized by one party always giving and the other always taking. Instead, both business and owner give to the other. Unraveling mutual dependency—business on owner, and owner on business—is completely understandable. Many owners started their businesses, nurtured, lost sleep over, and invested
Have you ever launched a new product, service, or marketing campaign, or relocated your company’s headquarters without having to make some hard choices regarding the people and resources needed? No business transition is dilemma-free. SCHEDULE A COMPLIMENTARY CONSULTATION All the successful entrepreneurs we know expect to—and do—make course adjustments when faced with choices (or dilemmas) during important projects. When it comes to the project of transitioning out of their companies, however, too many owners become overwhelmed simply by thinking about the number and severity of the dilemmas they expect to
Several weeks ago, a business owner (let’s call her “Pam”) updated me on the status of her business transition plan, specifically on the progress her chosen successor was making toward becoming the one-day owner. The two conversations were a perfect illustration of the gain and gap concepts that Dan Sullivan and Dr. Benjamin Hardy describe in The Gap and The Gain: The High Achievers’ Guide to Happiness, Confidence, and Success. At its most basic, we operate in The Gain when we measure progress against a point in the past. We
Having worked with hundreds of business owners for over 30 years and being one myself, I recognize the signs that tell owners that it’s time to begin planning a business transition. Please note that these signals don’t indicate that it’s time to transition out of your company. Rather, they are signs that it’s time to begin planning your transition journey. There are several signs, of course, and in this article, we’ll look at the most common three ways owners know it’s time to start planning a business transition. 1. A
“Time passes whether I stand still or move.” Anne Barngrover Poet and author When I read “Time passes whether I stand still or move,” I thought about the owners who were running their companies in 2008 and have the battle scars to prove it. Sometimes and unfortunately, however, scars can prevent them from sensing the three shifts (see my last post) that tell them it’s time to start planning their journeys out of their companies. They are: A slight shift in their feelings. A desire to do something different. A
Have you crunched the numbers for the next phase of your life? When asked about our plans for retirement, most of us jump right into a financial discussion. We think of tax-advantaged saving mechanisms and managing and building the value of our financial assets and businesses. These are all great ways for business owners to prepare for a financially secure retirement, yet financial security is only one element of a meaningful and happy retirement. As a business transition specialist, I know that a business transition is not truly successful unless
