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Business Succession: The Two-Pronged Approach to Exit Planning

Posted by Concannon Miller on Tue, May 1, 2018

When business owners begin to think about their business exits, they tend to focus on one specific goal that they want to achieve. Some owners focus on when they want to exit, some focus on how much money they want when they exit, and others focus on the person or group that will take over once they exit.

But what’s the process that takes owners from thinking about what they want, to acting on what they want?

In the context of Exit Planning, it’s important for business owners to understand the two-pronged approach that Exit Planning Advisors take to Exit Planning. The first prong is the general prong, which focuses on a successful business exit for a business owner. The second prong is the specific prong, which focuses on the business owner’s goals and in turn defines what makes the business exit successful.

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Topics: Succession planning

Family Business Succession Planning: Steps to Starting Transition

Posted by Concannon Miller on Tue, Mar 27, 2018

The majority of North American businesses are family owned and many are facing ownership-transfer issues as more Baby Boomer founders enter retirement.

On the eve of a retirement, or following a death, family-run businesses have four basic choices. The first two involve giving up a family tradition: closing up shop or selling the business to outsiders or non-family employees.

The second two choices involve keeping the business under family control and either hiring outside managers or passing on the business to younger family members.

That final option of family succession can be difficult and not every business that attempts it is successful. Family dynamics often play a major role in the success or failure of a transition. Only a very small number of family businesses succeed in transfers to the second generation and even fewer make it to the third generation.

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Topics: Succession planning

Business Succession Planning: When Key Employees Stall Your Plans

Posted by Concannon Miller on Tue, Mar 13, 2018

An important part of a successful ownership transfer, regardless of Exit Path, is the presence of key employees. Key employees are those who have a direct and significant impact on business value, meaningfully participate in the business’ strategic future, and whose combination of skills and experience would be exceedingly difficult to replace.

Because of their role in the business, key employees can just as easily stall your business exit as facilitate it.

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Topics: Succession planning

Business Owners: How to Best Set Exit Goals for the New Year

Posted by Concannon Miller on Thu, Jan 4, 2018

With the new year upon us, many people have begun their journeys to fulfill their New Year’s resolutions. For business owners, it’s no different. Between creating goals for the business to achieve and assuring that the business keeps growing, owners will have much to consider this year.

One of the goals most commonly shared by owners is to successfully exit their businesses over the next 10 years. Most business owners have a sense of how much longer they want to remain as owners of their businesses, and the new year is a perfect time to take control of the planning that can make the future successful.

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Topics: Succession planning

How Business Owners Can Realize Their Retirement Goals

Posted by Tom Garrity on Tue, Jan 17, 2017

Most business owners dream of a business legacy and financial independence.

Many never reach their goals. But it doesn’t have to be that way.

So what’s the formula? It’s pretty basic: reduce risk, drive profit, and build a team stronger than you are alone.

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Topics: Business consulting, Succession planning

How Succession Planning Can Give Business Owners the Retirement They Want

Posted by Tom Garrity on Tue, Oct 11, 2016

The failure of successful family business owners to reach their personal goals, especially their financial goals, is not because they don’t try or care. In our experience, the main cause of failure is lack of clarity, a plan around the big picture, and a myopic pursuit of the "urgent."

There are 5.5 million family-owned businesses in the United States, comprising nearly 90 percent of all businesses. These companies comprise over half of the nation’s GDP and create three-quarters of all new jobs. Only 33 percent make it to the second generation and less than 12 percent make it to the third.  Many family business experts believe that one common cause of failure in family businesses is a lack of transition planning and preparation.

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Topics: Business consulting, Succession planning

CEO Management Succession: 11 Guiding Thoughts

Posted by Tom Garrity on Thu, Jul 7, 2016

It is difficult to begin to think about management succession for many business owners who need to begin.

Consider these 11 guiding thoughts as a starting point:

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Topics: Business consulting, Succession planning

Family-Run Businesses: Preparing the Next Generation for Success

Posted by Tom Garrity on Tue, Apr 26, 2016

Nearly 90% of all businesses in the US are family businesses. That is a lot of businesses!  

But the odds of a family business succession are not good – 33% make it to the second generation, and only 3% make it to the third generation. What’s going on? Are the kids that numb?

No! My experience is that for the most part, the parents are that numb! Not on purpose, but they have created a mess, and when pushed into the corner of their retirement, they have run out of time to correct the course.

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Topics: Business consulting, Succession planning

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