Let’s face it, Canadian Entrepreneurs avoid succession planning. It is like Estate Planning for your business, yet similar to a will, it is often human nature to avoid planning for transitions. If not addressed, your legacy is in jeopardy. Once of the most effective ways to build a succession plan is through an advisory board. A family business adds an additional layer of interpersonal dynamics to succession. The Business Development Bank of Canada (BDC) offers a rich set of tools and tips.
Where do you begin your succession plan?
Roles and responsibilities is a good place to start. Your business is likely successful because you and your team are working full out to ensure its sustainability. As the business environment evolves, your roles may change and the future skills for leadership may need to match. Beyond the functional roles you will likely need to determine how much is your business worth? To establish a realistic value for your business and discover the most common method used to determine a fair sale price often requires professionals and advisors. How will the transition be financed? What constitutes a good financing package depends upon your business structure and needs. There are typically 5 main sources of financing. Enjoy the Global Family Office that offers a detailed perspective on family business transition.
As an entrepreneurial firm, our Hampton Advisors regularly assist entrepreneurs in this process. Let us know how we can help?