You've worked hard for years to build a successful business, and
your ultimate goal all along has been to have a secure retirement. If
this sounds like you, then it may be time to start planning for your
future to ensure a smooth business transfer. It is always important to
start your exit process by having conversations with your heirs,
associates, and your employees. This is a vital part of any company
transition. Here are some key discussions to have with all key people
who are affected.
The retirement needs and desires of your spouse
Frequently, couples think they know what each other's desires and goals are when it comes to leaving the workforce. One may envision keeping the firm well past retirement age, and the other may want to retire much sooner.
This is why it is essential to discuss your retirement objectives ahead of time. Things to talk about may include whether you want your children to take over the enterprise, or if you should sell to an outside buyer. Such discussions can help you avoid confusion.
It is essential that you thoroughly discuss your retirement expectations with your spouse, so you both are sure about each other's desires and expectations. This will allow the two of you to come to an agreement, and create a well-defined vision for your retirement. As an example, you may want to talk about your views on when to retire, as well as how you would like to spend your later years.
What are your children's visions?
Are your children interested in running the company? Do they have other dreams (career and family related)? Are they planning on still living in the area? If they do want the business, then why? These are all important questions to ask them as part of coming to a decision. You may also want to cover such topics as the value of education, financial independence, and work ethic.
It is possible that your family has other desires, and they may not have an interest in the family business. However, if they do decide to continue the business, you should explain the advantages and disadvantages of running a small company.
If there is more than one child involved, you will have to decide which job functions are best for each heir, and how you will divide the assets. These discussions can be complicated, so it is important that everyone affected have a clear understanding of your plans. It may also be necessary to seek your advisor's help in the process.
What your partners or employees are thinking
Certain individuals, such as your business partners and your key employees should be informed about what is going to take place. If you have this conversation ahead of time, it may save everyone from a lot of stress and uncertainty. This is also important in order to avoid losing your most valued individuals, since they could resign from the company due to the insecurity of their jobs.
So, it is critical to the future of your organization to have open communication regarding your decisions, early in the game. This will preserve your credibility, and allow room for new ideas, development, and opportunities. By getting different perspectives, you may come up with solutions that will improve the organization as a whole.
In retrospect, it is critical that your retirement/exit plan includes honest communication about the future of your organization. Timely discussions with all key people affected, will provide you the greatest chances for a smooth exit. It is critical for you to begin this process sooner than later.
The retirement needs and desires of your spouse
Frequently, couples think they know what each other's desires and goals are when it comes to leaving the workforce. One may envision keeping the firm well past retirement age, and the other may want to retire much sooner.
This is why it is essential to discuss your retirement objectives ahead of time. Things to talk about may include whether you want your children to take over the enterprise, or if you should sell to an outside buyer. Such discussions can help you avoid confusion.
It is essential that you thoroughly discuss your retirement expectations with your spouse, so you both are sure about each other's desires and expectations. This will allow the two of you to come to an agreement, and create a well-defined vision for your retirement. As an example, you may want to talk about your views on when to retire, as well as how you would like to spend your later years.
What are your children's visions?
Are your children interested in running the company? Do they have other dreams (career and family related)? Are they planning on still living in the area? If they do want the business, then why? These are all important questions to ask them as part of coming to a decision. You may also want to cover such topics as the value of education, financial independence, and work ethic.
It is possible that your family has other desires, and they may not have an interest in the family business. However, if they do decide to continue the business, you should explain the advantages and disadvantages of running a small company.
If there is more than one child involved, you will have to decide which job functions are best for each heir, and how you will divide the assets. These discussions can be complicated, so it is important that everyone affected have a clear understanding of your plans. It may also be necessary to seek your advisor's help in the process.
What your partners or employees are thinking
Certain individuals, such as your business partners and your key employees should be informed about what is going to take place. If you have this conversation ahead of time, it may save everyone from a lot of stress and uncertainty. This is also important in order to avoid losing your most valued individuals, since they could resign from the company due to the insecurity of their jobs.
So, it is critical to the future of your organization to have open communication regarding your decisions, early in the game. This will preserve your credibility, and allow room for new ideas, development, and opportunities. By getting different perspectives, you may come up with solutions that will improve the organization as a whole.
In retrospect, it is critical that your retirement/exit plan includes honest communication about the future of your organization. Timely discussions with all key people affected, will provide you the greatest chances for a smooth exit. It is critical for you to begin this process sooner than later.
