Business Transitions

A business transition is a change from where the business is to where it needs to go.  Business transitions come in all shapes and sizes.  Your business may have grown to a certain point and now needs to establish an infrastructure of having a documented business plan, policies and procedures and an established human resources structure.   You may want to expand to a new geographic area or develop an entirely new product or service.  As the owner you may want to just work less hours or have your children take over the business and exit all together.

Your business transition plan shouldn’t be taken lightly.  By starting early you can create greater value and transfer more money to you personally when you do exit the business.

Bridges to Leadership can help you develop your Business Transition Plan.  This plan is a guide to ensure the business makes the transition successfully.  If you are exiting the business you will need a plan to transfer your key skills and knowledge to the new owner.   By including your employees in the transition process you will increase their loyalty and the value of your business.

Step 1 – Identify your key advisors.  Your team should consist of a business consultant who is a transition specialist.  Bridges to Leadership will coordinate other team members if needed depending on your unique issues.

Step 2 – Perform a Comprehensive Business Assessment.  This will evaluate all parts of your business and let you know which areas need to be addressed in the transition.  It will identify your internal strengths and weaknesses.  It will also tell you what your employees know about the business and if you are the most important asset in your business.

Step 3 – Develop a Comprehensive Action Plan that address everything that will need to be completed and by whom in order to make the transition successful.

By answering these questions you will be able to identify if it is time to begin a business transition:

• Do you have a written strategic plan?

• Have you communicated clear job expectations to your employees?

• Do you have systems in place to keep key employees tied to your company?

• Do you have employee turnover?

• Have you thought about your company’s legacy?

• Do you know how many more years you will work full time in your company?

• Would you just like to work less hours?

• Are you depending on the sale of your business for most of your retirement income?

• Do you have a successor in mind? Have you talked with them about this?

• Are the qualifications of the potential successor what the business needs to be successful in the future?

• Do you need help to increase of the value of your business to ensure you will obtain the maximum amount when to sell?

Call Bridges to Leadership (916-783-3716) for a free of charge onsite assessment.