Business Succession Planning Tips

When women entrepreneurs start their businesses the last thing on their minds is the thought of exiting the business. The concept of business succession planning seems counter to the energy and action we take to get our enterprises breathing and growing. Just like a business plan is needed to expand and succeed, every women entrepreneur needs to understand, be counseled, and educated in the financial and legal aspects of succession planning.

We put extraordinary time, energy, and resources into our business, developing a name in the marketplace, creating a brand, and building assets and income. It is essential to plan for transfering, selling, or exiting when we are ready to move on or when an opportunity arises. Here are some tips on starting a business valuation and exit strategy presented at a Women TIES Success Seminar by Betsy Powers of Sagemark Consulting in Syracuse, New York.

1. Catalog all of your business assets
2. Take a look at your personal balance sheet
3. Create a personal and business timeline for business transfer or sale
4. Start creating a framework for the transfer and sale
5. Discuss your timeline, framework and plans with key advisors
6. If you are in a partnership, make sure you have a buy-sell agreement
7. If you are a sole proprietor, make sure your exit strategies are outlined in your estate planning documents
8. The four key transfer options include selling during your lifetime, selling at death, giving as a gift at your death or giving as a gift during your lifetime.

Don't put off the planning...identify and communicate objectives and assess your long-range financial situation so you can benefit from the time, energy and resources you put into your enterprise.