Will you be able to walk away?
When is the right time to take a step back and leave your business? Is it at a certain age? Once you reach a certain level of wealth? Or will you never be fully out?
When they decide to leave their business, an owner will fall into one of four involvement levels going forward:
So how do you know which option is right for you?
Businesses come in all shapes and sizes as do their owners. Your experience and time invested shape your attachment to your business. Then there are other factors like family involvement, long-term relationships, responsibility to employees, etc. that make it hard to make a “clean break” from the business because now it’s not an “arms-length” transaction. Plus, there’s always something running in the background that sneaks up on us: emotions.
It’s difficult, but before making any plans to leave, you have to identify your level of attachment to your business because how we perceive ourselves is not always the reality. An owner may say they will sell their business without looking back, but in reality, they are too attached to simply walk away. This is where an objective third party needs to get involved, because as human beings we tend to have a blind spot when it comes to judging ourselves.
The role of objectivity
The transition process can be transaction-based or emotion-based when you go about it on your own. You can try to take emotions out of the selling equation as best you can, but there will always be a degree of bias that is inherently present in any decision. An advisor can give you an unbiased evaluation and help you realistically plan for your succession based on your individual situation. In this way, you can keep your emotions involved but have an objective party there to handle the transaction logistics while you untether yourself from your business.
Triumph Wealth Management, LLC has been helping business owners through transitions for over a decade. We have the experience and knowledge for succession planning because serving those in transition is our niche.
To discuss succession planning and how we can help, contact our office at firstname.lastname@example.org to schedule a meeting.