Retirement is a transition, and like every major life change, it brings with it plenty of unanswered questions. When do you want to exit? Would you like to maintain a role in your company even after retirement? How can you best care for your clients in the transition and the future? As you look to the next 3-5 years, your role with the company you’ve nurtured and grown is shifting. Learn to respond to the challenges ahead so you can set your company up for success.
Here are 3 common challenges that business owners face, and what you can do to tackle them.
CHOOSE THE IDEAL SUCCESSOR
Like any business owner, you want to ensure a maximum payout, satisfied customers, a well-funded retirement and an ongoing legacy. Business owners facing retirement have a variety of options available to them to determine a successor.
Being acquired can position your company for continued growth. You can ensure that your existing staff is cared for with the addition of quality new staff that enhance team capabilities, and networks that can launch your company in a new, successful direction.
Transferring ownership to a family member can provide peace of mind, as you likely have firsthand knowledge of the values and character of your successor.
Selling ownership to a business partner means that your company will pass into the hands of someone with a similar passion and vision for the business. If they leverage key tools like new technologies, they can usher in exponential growth.
Selling to an investor often means you or someone you designate can continue steering the course of the company. Investors often take little involvement in daily operations. Even so, they provide expert valuations and recommendations for where and how you can add value to the company.
Knowing your goals for your company through the transition and into the future can help determine your ideal buyer. Place someone at the helm with your same values and vision to ensure growth in a direction you can be proud of.
MAXIMISE YOUR PAYOUT
There’s no worse feeling than entering a succession knowing you could have done more to maximise your payout and legacy. Valuating your business lays the foundation for making tangible improvements that could make all the value difference as you enter the future. As you examine your business landscape, evaluate how technology and a new services model can help you increase your sales.
New waves are driving massive change over the next 5 years. Technology is key in an increasingly digital business and social world—and for connecting with your prospects in relevant ways.
NEW REVENUE STREAMS
Businesses that depend on a single revenue stream or service often hit walls. Today’s clients appreciate choice in product offerings and all-in-one financial solutions. As a trusted adviser, you’re in the perfect position to offer services and products to suit their needs.
ENSURE A SMOOTH TRANSFER OF HANDS
Regardless of what succession option you choose, leveraging technology can help make the transition seamless for your successor, your clients and your staff. If you haven’t already, invest in technology to take over routine functions and standardise processes within your firm. Use the time gained to spend on value-added activities like client development, strategy, and even succession planning. Use technology to automate key processes and ensure your clients continue to be served throughout the transition and into the future.
Smooth successions don’t just happen. They are the result of planning and working with a team to lay the right foundations. Without a plan in place, you jeopardise the future of the business you've worked so hard to build, and decrease the odds of getting a maximum return on your succession. If you haven’t yet created a plan, partner with an expert who can ensure that your questions and concerns are addressed and your succession is maximised. Work with a specialist to develop a plan that positions you and your legacy for ongoing success.
Are you ready to develop a succession plan that delivers a larger payout and lasting peace of mind? Contact our team of seasoned business selling experts to enhance your company’s value, maximise your profit and ensure your business legacy lives on.