Florida business owners like you pour attention and care into your business plan. This means starting from a strong base and working up. At that base, you should have plans for business succession or transfer.
Why is this such a fundamental part of your plan? Because the entire future of your business hinges on how well it works.
Passing your business on to an heir
Fit Small Business points out that choosing a successor is crucial for success. But there are actually many ways in which you can transfer the ownership of your business. Each one has its own benefits and potential drawbacks. What you choose depends on what you want for the future of your business.
First up is the possibility of selecting an heir from the family. Many family-owned businesses do this. This ensures that quality will likely remain the same. But you have no guarantee that a relative will want to take over the business. In some cases, too many relatives may have an interest in taking the reigns.
Selling your business
You can choose to sell to a co-owner or a key employee, too. This ensures that your business gets taken over by someone with personal investment. Not only do they have an interest in seeing your business succeed, but they also know the ins and outs already. The longer they have worked with you, the better. But buy-sell agreements are often taxing on the person doing the buying.
Finally, you can sell to an outside party or back to the company. This gets rid of uncertainties about finances. But you also have no way of knowing if your business is going to good hands. An unknown buyer may uphold your business principles. But they may take it in a different and bad direction. This risk is up to you.