In Monday’s Blog we discussed a phrase we coin, the “Biology of Exit Planning”: How age is a factor in Exit Planning, yet it is one of the key factors that business owners/partners tend to downplay, ignore or overlook due to sensitivity of the age card. Well, while you can’t change the reality of the age factor—you must plan for it personally in your business exit plan.
In today’s Quick Tips, we ask you to consider one question: Can your business continue if you could no longer run it tomorrow? If the answer is “Yes” – congratulations. If the answer is “No” or “I’m Not Sure”, you owe it to yourself, your family, and your employees to have an answer.
We have seen partnerships that have not given much thought to what happens if one of the partners retires or becomes ill or disabled and can no longer work. We have seen small businesses where the business owner has dozens of employees but no one to run the company if he or she becomes ill. Unfortunately, we see far too many small businesses inadequately prepared to manage an exit created by a biological event. And what happens? They close.
As a small business owner, we encourage you to personally take 30 minutes to seriously ponder this key question. And while you are answering this question – put aside the “it can’t happen to me” statement. Sure it can. It’s happening all around you right now. So, is your business positioned to continue if you could no longer run it tomorrow?
Copyright 2011 Kubica LaForest Consulting
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