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
As a transition strategist, I know how transition planning can help you envision a fulfilling life outside your company, but when I ask owners why they haven’t yet created a plan to transition their companies to successors, answers vary. I’m too young to think about leaving. I can’t imagine doing anything more, or as, meaningful as running my business. I’m having too much fun to think about doing anything else. I’m too busy running my company to think about a transition. The economy is too uncertain right now. Someday, I
There are many factors—both financial and personal—to consider when crafting a business transition. Among the financial factors is taxation, and one element of taxation that few owners have had to consider since 2018 is the effect of federal estate taxes on business transitions. Currently estates of less than $12.92 million (or $25.84 million for a married couple) pay no federal taxes. As of January 1, 2026, however, and unless Congress acts, the exemption level falls to approximately $5 million, as adjusted for inflation. Double that for married couples.[1] The value
Business owners frequently ask us whether this is a good time to begin transition planning. Especially in uncertain times, we hear this question a lot. (I wrote about Planning a Business Transition During a Recession in April of 2023.) Owners are naturally concerned about transitioning their companies to family members, business partners, or employees in a time of economic uncertainty. While they are confident in their own ability to steer their companies through tough times, they worry about whether their successors are up to the difficult task and certainly don’t
