Inevitably, one day you as a business owner will be prompted to sell your company or pass it down to an heir. To ensure you receive maximum satisfaction and authority over the outcome of your business it is crucial that you have: acquired a healthy financial income, reduced your company’s tax burden, and sustained beneficial assets for your successor(s).
Below are the nine fundamental advancements that will significantly progress the commerce of your business.
- Accept that one day you will have to leave your business and prepare by planning ahead of time and determine your target year of departure.
- Determine how much your business is worth. Remember that alternative values will be discussed when negotiating terms; this is not a sale price.
- Create a team of advisors by hiring: a mergers and acquisitions advisor, a lawyer, an accountant, and a financial advisor. Work with your advisors to establish your exit goals and plan of action.
- Share with key employee(s) your personal curriculum and methods to inspire them to remain with your company. This will help sustain the value of your business as well as help form and structure future opportunities.
- Educate yourself on taxes to minimize tax burdens. Communicate with your advisors to keep tax burdens away from company revenue, value, and income.
- Process the possibilities of whom you shall sell or leave your company too; come to a conclusion, which decision is right for you.
- Consult with your attorney to create your business continuity agreement.
- Continue to communicate with your advisors to ensure you reach your goals. Consult with them to create an estate plan that will better your opportunities and personal aspirations.
- Continuously review your method, plan, and goals through communication with your advisory team. If a problem occurs, regulate the issue accordingly; it is crucial that you remain in complete control over your entire planning process to be rid of this problem rather than letting it dictate your company to lessen the values you work to preserve.
Remember to review your Company revenues, income, and value at the conclusion of each year with your advisory team. You will immediately see the benefits of these advancements that implement prosperous change in your company and it’s future.
Brian T. Franco – Managing Partner of Meritage Partners