Planning for the Future
When the time comes to consider what's next (and inevitably the time will come), the prudent business owner will plan for growth, his or her succession or a sale. Some possible scenarios are these.
- How will growth be managed? More business does not necessarily mean more profit. Growth requires more employees, more space and more capital. Growing too fast in the good times can make you vulnerable in the lean times.
- Should you add a partner? Partnerships have many benefits and many pitfalls. Careful deliberation and professional advice can help you determine if partnership is a good choice for you.
- Have you anticipated future needs? The day will come when you will want to retire or "evolve" to your next best self. It's critical to have a plan in place so the future does not catch you off guard. Your employees' future must be considered as well.
- Who will take the reins when you release them? You have insurance for your firm's property, but what about its leadership? Who can ably step in if and when the unexpected occurs?
- When is the right time to sell? It takes preparation and time to sell a firm at a fair price. How do you assess its value if its principal asset--you--is no longer part of the firm?