Gerber, LLC Featured in Columbus CEO | Let's Talk Succession
SEPTEMBER 26, 2017
Succession - What is it?
One question that continues to cross the mind of each entrepreneur throughout their entrepreneurial journey surrounds succession; “What happens to my business after me?”
[Defined: Succession planning is the process of identifying the successor of a business’s current leader to take over a business.]
A succession transition can range from a key employee, friendly competitor, or a family member; ultimately it’s the business owner that will decide the fate of their business’s legacy.
LEAVE THE DICE FOR THE CRAPS TABLE
“You don’t want to go to Vegas and roll the dice [with your succession plan],” Randy Gerber says.
Instead, Gerber’s advice to entrepreneurs is to strike a balance between pulling money from the business to improve their personal balance sheet and reinvesting capital into the company to get a better return on their investment in preparation for a sale (regardless of if a sale is your desired exit plan). You always want to have your business financials in tip-top shape in the case you need to pivot into a sale unexpectedly.
Where do i start?
You may be realizing that you don’t have an exit plan in place for your business. – Don’t panic!
Step one is to think about who, internally, you would want to take over your business (such as a key employee on your leadership team). If there isn’t anyone internally that you feel is capable or the best option for the business long-term, the next step is to then explore other options (such as a business competitor or third party buyer). Take a long, hard look at your business to see how financially sound it is and what would best maximize the value long-term.
Want to read more from the Columbus CEO article “Succession Planning: The Final Sale?”
Click here.
