Build your Business with the End in Mind

Most business owners do a very good job of planning and executing their business strategies. Few, however, think about what to do when they can no longer continue to manage the business.

Ted Thomas of Sun Exit Advisors offered his insights on this topic in a interview with Mark Goodman of SCORE Chicago. Ted had three suggestions to aid in the planning of the eventual transition of your business.

1. Clear, up-to-date accounting practices.
Understand where your cash is coming from and where it is going. For some businesses, the only time when the financial situation is understood is the one day a year that taxes are filed.

2. Create operating systems that are documented and repeatable.
What is the sales process? When does inventory need to be replenished? How are invoices paid in order to avoid late payment fees? Who authorizes payments if the owner is not available?

3. Identify a second in command.
Who will be in charge if something happens to the owner? This information can be known to employees and partners or can be kept private. However, pushing a spouse or child into a role that they have not been prepared for can create significant difficulty at a very difficult time.

The above are only some of the important phases in preparing for an eventual sale. Click here to see Ted's entire interview or contact Ted directly.

The question is not IF your business will be transferred but, rather, will you transfer it on your terms and realize the maximum value for a life's work.