The CBC reports that according to a recent survey by RBC:
25 per cent of small-business owners wanted to exit their companies within the next five years. But only 23 per cent of those who said they want to retire have done any planning for that life change, the survey found.
The problems are several, according to experts. Sometimes there is no qualified successor to hand over the reins to…
In other cases, however, businesses fail because company owners don’t face up to their inevitable exit from the company and don’t have proper financial plans in place.
Let’s face it, procrastination is not an effective business planning tool and succession planning is no exception to that rule.
The secret to a successful succession is allowing for sufficient planning time. This will afford you the luxury to select the successor of your choice (family or not), develop a personal financial plan that you are comfortable with, allow for a mentoring period and plan for valuation maximization of the business and your associated retirement fund.
Photo credit (top): alenrylu