by David Shavzin
Exit Planning or Succession Planning is a Team Sport. When I speak on exit planning/succession planning, I talk about four high-level steps; Succession Planning; Knowing Your Business Value; Transferable Value Drivers; Exit / Succession Planning; and Business Exit Options.
Step 1: Exit and Succession Planning is a Team Sport
We have advisers and coaches in all facets of life. But in this most important area for our future, for our family and for our retirement, most business owners are pretty much just “winging it”. Oh, they may have an accountant but not much more of a team to focus on exit planning in all its facets.
That team is critical for successful succession planning.
Business owners start their companies to create their future. But they often lose sight of the key to making that future happen – building value. They get caught up in the day-to-day and don’t get to implementing the sustainable, positive change that allows them to transition on their own terms.
Consider: “…78 percent of small-business-owner clients plan to sell their businesses to fund their retirement. The proceeds are needed to fund 60 percent to 100 percent of their retirement needs. Yet, less than 30 percent of clients actually have a written succession plan…”
[I would suggest that 30% is generous, and even if accurate, that those plans are not very effective, for growth or for exit planning.]
When I speak on exit planning/succession planning/transition planning, I talk about four high-level components. The first component is to Build a Team of Advisers.
Nobody knows everything about everything. Many of my clients are in creative industries, designing, creating, building. You don’t want me in that role. But I have worked with many organizations and have a different experience and skill set than my clients. I bring ideas and experience from many industries and many client engagements. The other critical exit planning team members bring their own expertise to the table. These should include:
- Business Consultant / Coach
- CPA
- Financial Adviser
- Business Attorney
- Insurance Expert
- Estate Planning Attorney
- Banker
- Business Transaction Expert
The client receives much better advice and guidance with this approach.
This does not mean that you are going to start hiring all of these people and employing them full time as you work toward your transition…especially if you have a few years to go. But, you should use them strategically as you build your business plan/succession plan. With major decisions on growth, expenditures, hiring…engage their expertise.
The Bottom Line
Find advisers who understand what you are all about. And, find those who understand your growth and exit planning objectives. More importantly, find advisers with whom you can feel comfortable. Make sure that they can work together and with you as a team.
David Shavzin, CMC
Shavzin & Associates, Inc.
Shavzin & Associates, Inc.
770-329-5224
Our BLOG // LinkedIn // www.ShavzinAssociates.com
dshavzin@shavzinassociates.com
Thank you for visiting my blog. I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
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Jim Weber, President
New Century Dynamics Executive Search
JimWeber@NewCenturyDynamics.com
Author of: Fighting Alligators: Job Search Strategy For The New Normal
Current Assignments
1. COO- Atlanta-based Casual Dining Restaurant Company - New
2. Controller - Atlanta-based Consumer Products - Digital Company - New
3. Director of Biz Dev, Atlanta-based B2B Professional Services Company: Complete
4. Payroll-Benefits Manager, Atlanta-based Retail Company: Complete
5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
6. Controller - Atlanta-based Restaurant Company: New
7. Outplacement Assignment - Atlanta-based Manufacturer: New
Our BLOG // LinkedIn // www.ShavzinAssociates.com
dshavzin@shavzinassociates.com
Thank you for visiting my blog. I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.
Jim Weber, President
New Century Dynamics Executive Search
JimWeber@NewCenturyDynamics.com
Author of: Fighting Alligators: Job Search Strategy For The New Normal
Current Assignments
1. COO- Atlanta-based Casual Dining Restaurant Company - New
2. Controller - Atlanta-based Consumer Products - Digital Company - New
3. Director of Biz Dev, Atlanta-based B2B Professional Services Company: Complete
4. Payroll-Benefits Manager, Atlanta-based Retail Company: Complete
5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
6. Controller - Atlanta-based Restaurant Company: New
7. Outplacement Assignment - Atlanta-based Manufacturer: New
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