The Baby Boomer Generation consists of individuals that are between the age of 67 and 49. According to the 2002 United States census, over half of the business owners in the United States were baby boomers. These numbers would tend to show nearly half the business owners in the US are nearing the age of retirement. Many of these individuals are planning on getting value out of their business to aid in their retirement plan. But how easy is that?
Succession planning is an intimidating term. Basically, that term boils down to having an exit strategy. To put the planning in perspective, think of your house. That is a large item and if you were planning on selling your home you likely have a value that you would like to get out of it. That number that you have would likely become a lot less flexible if you needed that money to fund your retirement. How quickly do you think that you would be able to find a buyer that would come close enough to your number that the transaction could happen? It likely would take a while. In the sale of your business, the monetary figures are likely more than the value of your house and market is a lot smaller than the residential real estate market.
What is the difference between your small business and those businesses we all hear about doubling or tripling in size over a period of time? Are they lucky? Do they have better connections than you? Maybe they have better customer service than you? While any of those answers might be the difference, it is more likely that those businesses made the conscious effort to grow and expand. They made the deliberate decision that they wanted to get bigger and not hope for growth to come naturally. So how can you be the next great success story?
Rieva Lesonsky of SCORE business advisers made 4 recommendations for a business that is looking to grow or expand: 1) Consider your current business; 2) Assess your expansion capital; 3) Don’t keep it a secret; and 4) Plan for success. These 4 things might seem overwhelming but growth should be a deliberate action and there is help out there for you. This is The Business Law Group’s spin on Lesonsky’s suggestions.