Exit Your Company the Right WayBy Nina Kaufman, Esq.
It seems counterintuitive, doesn’t it, to prepare for the end when you are just beginning your business. But, as former President Dwight Eisenhower was known to say, “if you fail to plan, you plan to fail.”
You need to have an ultimate goal when starting your business–whatever that goal may be. It could be:
- To provide you with meaningful work and a livelihood for as long as you can work
- To create an asset that you want to sell within a certain time frame
- To develop a legacy that you want to give to your children
In his E-Myth article, “Exit Your Company the Right Way,” Mark Jordan points out that your company needs to accomplish your long-term objectives. Of course, this presupposes that you have a long-term objective. 🙂 That you have a plan for how you want to dispose of business other than “whoops, I’m dead (or gravely ill)–what do I do with it now?”
Have you considered passing your business to your child (or other favored younger person)? What has gone into your thinking and planning process? If you hesitate before answering, have a look at Jordan’s suggested action steps so that you can start to get the ball rolling. And, if you want to see how not to handle succession planning, well, read his “case in point.”