business transition planning

Have you spent time on the most critical part of business development? Writing a strategic plan means committing your business values, mission, goals, plans, and vision to paper – documenting your guiding principles.

A well-thought-out strategic plan looks at the history of your business and its current state and then defines a plan for growth. A good plan should map out a path to success and guide you and your employees through any challenges, ultimately delivering you to your goal.

How far down the road have you looked to plan for future challenges? Most business owners don’t look beyond a single year at a time, but that’s like traveling one step at a time without knowing your destination. If you don’t look ahead, on the road or in business, how can you plan for roadblocks or detours? How can you prepare to hand over the keys if you want to sell, or retire?

Additionally, what about emergencies? Who’s driving the car when you can’t? Your plan should cover all those questions, and more.

Your strategic plan should include short- and long-term planning to guide your business to reach its potential now – and later.

An Exit Plan is Critical

“A 2022 MassMutual study indicates that only 8 percent of business owners have a completed the process of developing written succession plan. Equally troubling is the fact that about one in four successors, those that the owner has targeted to take over his or her company, do not know that they are in the succession plan.”

Many business owners don’t think about an exit strategy until they feel ready to move on. At that point, they may have already missed opportunities to get more value out of their company.

It’s critical to plan for both expected and unexpected exits:

Expected – goals with retirement or selling in mind

A planned exit can be a long-term process or a quick deal. Maybe you’ll plan to sell in ten years, or outline the steps needed if you receive an offer before then. Either way, the closer you get to the end, the harder it can be to see the best way out. Failing to plan may mean you have less control over the outcome and achieve less than optimal results.

Unexpected – we can’t schedule the unexpected, but we can prepare for it

Few business owners would have predicted a pandemic in 2020. But savvy businessowners may have planned for contingencies such as supply line interruptions or workforce shortages. Pandemics, natural disasters, rent or location events, or the unexpected loss of life – these are things we don’t want to think about. But if you don’t think about them, and the unthinkable happens, how will your business hold up?

How do You Benefit from a Carefully Planned Exit Strategy?

Planning minimizes the element of surprise:

  • Planned exits have better results than unexpected exits
  • You’re better able to meet unexpected problems head-on (health or family, for example), without added stress
  • You’ll have steps in place in case of unexpected offers
  • You’ll be able to liquidate faster, if needed
  • You’ll be ready for retirement, personal time off, or if you’re simply ready to move on

Including an exit strategy when you write your strategic plan ensures you’ve taken the right steps toward success, less left to chance, and are prepared to make informed, rational decisions. You won’t be rushed and won’t be as likely to make decisions based on emotions, or under stress.

Not sure where to start with business transition planning?

David is an accomplished and experienced business professional who brings over 40 years of insight to the table. As a business coach, he specializes in helping business owners prioritize their business needs, identify areas of improvement to support those needs, and lead their business to its greatest potential. He can help you plan for the future of your company.

It all starts with a single, free conversation. For help with business transition planning in Ann Arbor, Call 734-726-5208 today for a free coaching session or contact David. In today’s world, you need to be ready for anything.