Business, like life, is risky enough without taking chances. In order to truly create a future of your own design, it’s important to be prepared, which means building transition planning into your long-term strategy so it will be there when you need it most. According to the Canadian Federation of Independent Business, 72% of business owners intend to exit their business in the next decade with $1.5 trillion worth of assets being transferred to new owners.
A transition plan is a bit like a parachute: when you reach for it, you really need it to be there. Some successful transitions take five years to fully plan and implement. That’s why it’s never too early to start building your plan—even if you’re years away from retirement. This guide was made to help.
We have a free guide made for all kinds of businesses and their teams. This guide covers:
Planning for your future. A 2016 survey of Alberta business owners found that 91% believed succession planning is important, yet only 21% had formal plans in place. Having a proper business transition plan gives you the opportunity to fully evaluate your options and be prepared in case you should unexpectedly experience one of the “5 D’s” (Death, Disability, Dispute, Departure and Divorce).
What is transition planning? A transition plan is a roadmap for how you will transition yourself out of the business and transfer the business ownership. In this section we review:
- Who needs a transition plan?
- What are the benefits of a good transition plan?
- Is transition planning the same as estate planning?
Our seven step process. We have developed a process to guide you through the development of a transition plan.
- Setting and managing transition objectives
- Selecting your preferred exit strategy
- Knowing the value of your business
- Enhancing your business value
- Planning to minimize tax implications
- Planning to accomplish personal financial goals
- Building a team of trusted advisors