When it comes to protecting what matters most for the long term – assuring a legacy, enriching a nest egg – business owners need to be an active part of the change they want to see. Here are the top five reasons why you need a Transition Plan right now:
- More often than not, if you fail to plan, you plan to fail.
- Only about 30% of family businesses even make it to the second generation,
- 10-15% make it to the third, and
- 3-5% make it to the fourth.
- Identifying a successor takes time. Developing a successor takes even longer.
- No less than five years is the typical amount of time it takes to properly designate, determine, and develop your successor – under your governance and leadership.
- You can’t control everything in your business, but working towards a goal lays the foundation for future success.
- It’s not facing their own mortality that scares most business owners away from formalizing a plan for their future business legacy, personal exit, and ownership transition. Studies have shown that it’s actually related to not feeling able to take the time, make the effort, manage the process, and give up their business right now.
- Success is a small step taken just now.
- The change isn’t now. The change happens when you’re ready. Anticipating the change now however, provides business owners with greater control (to say how, who, when) for a better overall outcome (increasing value and wealth, and securing a legacy).
- Time is money. Money is time.
- Taking the time to sort through difficult situations, build timelines, strengthen resources, and develop leaders will increase your business valuation and pay off in the long run.
K·Coe Isom’s Next Gen advisory team is hosting a free webinar to demonstrate how we have helped businesses to navigate tough business decisions, facilitate emotionally-charged family discussions, and ease entity transitions. We’ll address common questions and concerns surrounding estate planning, risk mitigation, legacy building, and transition strategy. Watch the webinar recording now..