As a small business owner it is a fair assumption that you spend a large proportion of your life working hard towards building profitable and successful business. This is no mean feat and certainly not something to be taken lightly.
With all of your efforts devoted to maintaining and growing the business, it is likely that you have not stopped to consider what would happen to the business should you no longer be there everyday. Your absence may be a conscious choice, such as spending more time with your family or it could be as a result of an accident, illness or even death.
Similar to writing a Will, constructing an exit plan for your business is one of those “not very nice things” that no one really likes doing and hopes that it will never actually be needed. But when it comes to the crunch, without an appropriate plan in place, all of your hard work could be lost and there may also be some unforseen problems down the track.
Some things to address when considering your exit plan include:
- Will you remain associated to the business? You may choose to continue as the owner and have someone else manage it on a day-to-day basis or you may sell the entity to someone else.
- Who will take over your role? Will you train an existing employee? Will it be a family member? Will you get someone new in specifically to take over?
- Who have you told about your intentions? Are those who will be directly affected by any changes aware of your future plans?
- Review current policies and procedures – Are there any policies or procedures that need to (or could) be implemented or amended to ensure continuity of operations in your absence?
It is probably hard to imagine yourself not being a part of the business you work so hard for, but inevitably it will happen in one way or another. There are many options to consider and what is right for one business will more than likely not suit the next. To ensure that your business will continue in your absence speak to the business advisors at The Quinn Group on 1300 QUINNS (784 667) or on +61 2 9223 9166 or click here to submit an online enquiry.