Business Transition Planning: Why is it important?
As a successful small business owner have you considered what will happen to your business in the future? Most small business owners have thought about transitioning their business in the future, but have not yet put a plan in place. Nationally, 46% of all businesses have thought about business succession. While 45% of larger businesses have a succession plan, only 14% of small businesses have a succession plan. Additionally, 80% of all businesses have not named a successor.
Succession planning affects many future financial implications as well as many relationships. Small business owners need to consider the impact of business succession planning as it relates to the following questions:
- When should I consider business succession planning?
- How do I implement a business succession plan?
- Who should I transition my business to: Family? Outside party?
- How will the transition affect my family?
- Who do I need to consult to determine the amount I need to receive from my business?
- What are the tax implications?
- Can I retain some control of my business after the transition?
- How will the transition affect my retirement income?
- Can I continue my current lifestyle?
- How will the business community be affected by my business transition?
The Iowa Small Business Development Centers is holding three workshops across the State of Iowa to provide information on the benefits of timely business succession planning and hands-on assistance on how to plan for the transition of ownership of a business.
Put Success in Succession workshops will be offered in Marion on April 27, 2011; Emmetsburg on May 3, 2011 and Davenport on May 18, 2011.
Topics covered at these workshops will include: selling a business to family, employees or outside buyers; successful strategies and landmines; assembling a team and the succession process; buying/selling motivation and issues; legal, tax and financial considerations; along with panel discussions by local experts and resource providers.
Understanding business succession and the importance of planning is essential to sustaining the wealth of a business and the value of that business in our communities. Business owners at any stage of succession planning, or those who want an understanding of the process for the future, are encouraged to attend these succession workshops.
Workshop cost is $59 for 1st attendee from a company and $29 for each additional attendee from the same company, which includes lunch and a resource guide. Registration, specific locations, times, and more information is all available at www.iowasbdc.org/businesssuccession.aspx.
The Iowa Small Business Development Center program is an outreach unit of Iowa State University’s College of Business. Partially funded by the U.S. Small Business Administration, the organization has 15 regional business assistance centers located strategically across the state.
Since program inception in 1981, the organization has provided expert, confidential business counseling and affordable, practical training workshops to hundreds of thousands of Iowa businesses and entrepreneurs.
For more information on Iowa Small Business Development Center programs or services, call (515) 294-2030 or visit www.iowasbdc.org.