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A business transition involves significant changes – naturally, some challenges occur during the transition planning process. Whether, as the business owner, you’re taking on a different role in the business, transitioning into a larger company, becoming a public company, or exiting the business entirely, it’s critical to prepare for potential issues to reduce their impact during and after the transition.
Keeping Everyone Informed During the Transition
It’s essential to keep everyone in the loop about the change in ownership and management during the transition to maintain the trust of your staff (especially your top talent), vendors, partners, and customers. Waiting too long can do more harm than good and cause unrest – the most valuable participants in your business will leave or look elsewhere if surprised. You must plan the right way, time, and means to discuss the transition.
The Resistance to Change
A business transition may rouse fears of detrimental change in your business. Customers and staff may resist the changes occurring out of loyalty to your ownership and operations management, distrust of new ownership, and fear of your key employees losing their positions.
Business owners may send personalized marketing via social media or email newsletters to inform customers of the business transition. Change management is also a strategy to prepare your organization for the changes using a strategic approach to combat these fears.
Negotiating Your Business Sale
You risk selling your business for less than its actual worth if you forgo professional advisement from a certified exit planning advisor, lawyer, or broker. Buyers may negotiate for a lower sales price if you don’t have support.
Financial Planning and Management
The business transition requires funding for professional resources: business owners should get a financial projection to determine how much is needed and start budgeting, saving, and managing assets and cash flow.
Implementing Changes in Processes and Operations Management
Naturally, your operations and processes will experience significant changes during the business transition as an essential part of growth. Business owners must strategically manage and plan changes to ease teams into new organizational structures and daily operations.
Benefits of Working With a Certified Exit Planning Advisor for Transition
- I conduct a strategic business review to help you assess your current professional health, position, and value to help us identify challenging areas and strategize solutions.
- You will have confidence in your transition strategy using professional advisement, review, and assessment of your personal and business goals.
- We will prioritize your stipulations during sales deals, whether internal or external.
- We strategize optimal financial return while minimizing potential losses by choosing the best transition strategy and path to completion.
- You will plan how much involvement (if any) you want to remain in your company once the transition begins.
- You will successfully establish a family business legacy if desired.
Business owners ready to create an optimal business transition plan can book a consultation with me today.
