Q. How is a business transition plan different from the typical business plan that most of our readers are familiar with?
A business plan describes how a company will achieve its goals. A business transition plan describes how business owners will achieve their personal goals through the best method of transition for them. That best method is determined by considering business owner’s goals and their current financial and emotional readiness for a transition. This then determines the gap between where they are now and where they need to be to reach their goals. It then includes a plan to maximize & protect the business value, a plan on the best method of transferring ownership, a plan for unexpected events and an estate plan.
The amount of time and effort a business owner puts into their business transition plan is up to them. We can help guide clients in their preparation of this plan through the Business Transition Coach Forum™ or we can do most of the plan for them or guide them step-by-step through the process. The important thing is that they start early.
Q. Is there an ideal time or stage for business owners to consider planning for the transition?
Ideally, every business owner should have a transition plan when they first start their business just like professional Private Equity Groups do.
Originally posted 2016-10-22 01:07:55.