The Small Business Bible: Everything You Need to Know to Succeed in Your Small Business, 3rd Edition

Chapter 53

Exodus

Be prepared.

—Boy Scout motto

There may come a time in the life of your business when you want to move on, when you have given it as much as you can. People leave businesses all the time—to start another business, to cash out, to let a child finally take the reins, to retire—the reasons are many. But any exit strategy requires preparation, preparation that many entrepreneurs are loath to do. In this chapter, we tackle getting out, made easy.

Succession Planning

No one likes to think about his or her own death, but should you die without a plan, what would happen to your business, to your family? Succession planning is your way to ensure the continued viability of your vision, and therefore it should be part of any small business plan. If something does happen to you or to other key team members (should someone die or leave unexpectedly), would the dream live on? Succession planning ensures that it will. Not only do you need to create a succession plan for your own sake, but it is also something you owe your employees, vendors, shareholders, and investors. They all depend on your business to some extent for their livelihood. Succession planning is the process whereby replacements are identified and groomed, not only for the chief executive officer (CEO) or president but possibly for key managers as well.

Consider the cautionary tale of Marty, the owner of a successful small business. As he got older, Marty decided that he needed a succession plan, so he created ...