Transition Planning for Business
- Before creating a transition plan, ask yourself about your goals in planning for the continuing operation of your company. These may include personal goals, such as taking good care of an establishment you are invested in emotionally, or allowing yourself some rest after many years of hard work. They will also likely include financial goals, such as a specific sum of money you may need in order to retire. Clarifying goals for your transition plan will enable you to create a document to meet your needs.
- Creating a transition plan before you actually need it gives you time to shape your company in ways consistent with your long-term vision. In most cases, your company will not be ready immediately for the transition you envision. For example, the process of creating a transition plan will probably alert you to the fact that there are aspects of running a business that nobody understands except you. Giving yourself time to implement your plan improves your odds of doing so successfully.
Selling Your Business
- A transition plan is a vital element in a business sale. It is the document that shows a potential buyer that your business can continue and make money even if you are not operating it personally. When you are preparing a transition plan as part of a business sale, put yourself in the shoes of an interested buyer. Create answers to help him to visualize taking over your company, and set his mind to rest about any concerns about the business's capacity to function without you at the helm.
Writing a Plan
- The process of writing a transition plan will likely involve professionals whom you hire. It is a good idea to work with a lawyer, who will understand the intricacies and legal ramifications of separating yourself from a company you have painstakingly created. In addition, work with an accountant who understands both your business and personal finances. You may wish to consult a business broker as well if you plan to sell your company.