Last month, we sent out an article entitled, “Here’s Why You Should Have a Succession Plan for Your Business” that talked about various considerations of what is next for your business when you exit it either voluntarily or involuntarily. Most businesses have a lot of moving parts that need to be addressed when developing a plan.

A couple points stood out to us that we think all business owners should consider further:

  • What does the current owner do, and who will be the person to take over these tasks if “X” occurs?
  • To quote the article, “It’s best to adopt a practice of perpetually running your business as if you’re ready to sell any day, making it as efficient, productive, and profitable as possible.

We feel very strongly that adopting various best practices along the lines of the points above and other points in last month’s article is what will yield the maximum number of options available when the business does come to that crossroads of selling, transferring to the next generation, or shutting down altogether. Regardless of the end result desired, strategy should be put in place to facilitate a graceful exit or transition.

One tool available from Security Bank is a worksheet to help you as a business owner to estimate the value of your business in a systematic way. Regardless of what the future plans might be, knowing the business’ value may shed light on a clearer path to take.

If you are interested in working through this exercise or would like to know more, please fill out the enclosed postage-paid postcard and mail it back to us. One of our commercial lenders will promptly contact you to visit further.