As a business owner, you understand the importance of planning. You plan out inventories, employee work schedules, customer meetings, and revenue projections. But have you given serious thought to planning out what will happen when it’s time for you to step away from your business?
This is where business planning comes into play. It’s a time to begin working ON your business while working IN your business to make sure the company is prepped for when you transition out. And this level of planning shouldn’t be handled by yourself. This is a moment when a team of experienced professionals supporting you is important.
Building a strong team
Creating a strong business planning team can help ensure ongoing strategic alignment, risk management, and exit readiness. When these elements are intentionally built into everyday planning, the business is not only positioned for growth but also structured for a successful and profitable exit whenever the opportunity arises.
When putting together this team, consider including the following people:
- Financial Advisor: This individual should serve as the long-term planning partner. It’s someone who can look across your financial landscapes and help you think strategically about the planning process. The financial advisor often also services as the “quarterback” of your business planning team to keep everything integrated and aligned.
- M&A Advisor, Investment Banker, or Business Broker (when appropriate): If your exit plan includes potentially selling the business, having one of these professionals on your team is a smart move. They can work with you to bring the business to market and manage buyer interactions.
- CPA or Tax Advisor: This team member’s focus is on tax optimization and financial reporting accuracy.
- Business or M&A Attorney: An attorney can handle legal structuring and risk mitigation as you plan for your business exit and can also manage transaction execution once the exit plan is put into action.
- Valuation Specialist: Many business owners don’t have a clear picture of what their business is worth. A valuation specialist can help you establish a realistic baseline valuation and work with you to identify value drivers.
- Executive Management Members: When the time is right, you may also include the members of your business’s executive management team. These individuals know your business inside and out and can be instrumental in the planning process. Their keen understanding of the company’s finances, operations, goals, and culture can further support a successful transition of ownership.
While you may already work with some of these key professionals, your financial advisor can help you connect with other important business exit specialists to fill out your team.
Ongoing support for your business
Once you’ve assembled your essential team, it’s time to get to work. Their collective experience and knowledge can combine your dreams for the future of your business and your own personal retirement goals. This will help ensure your business plan is working effectively for you.
If you’re not already working with a financial advisor, we’re here to help! Reach out today to be connected with someone who can support you throughout the business exit planning process.
Tom Fridrich is a non-registered associate of Cetera Wealth Services LLC.
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