No matter how much you love your work, there comes a time when you need to slow down a little and start considering retirement. Your business has functioned for many years with you at the helm, and it’s hard to imagine a time when you are not in full control. And yet, you know you have to plan for the future of your business, and that future involves a successor.
It’s scary thinking about moving on and leaving your “baby” in the hands of another. There are a lot of options to consider, and you’re scared to make a mistake.
There are definitely pitfalls to avoid in setting up your business succession plan. You’ve eliminated most of them but putting in the hours and the research to ensure you’ve chosen a strategy that is the best fit for your thriving business. That’s a great first step. And that first step is making use of ESOPs to help take your company into the future. You can definitely see how this particular plan will benefit all parties if it is implemented correctly.
But you do worry about how smoothly transitioning ownership will go. You want to put the same effort into your business succession plan as you did into the building of your company. It took great care to get you where you are today, and you are committed to putting that same care into its tomorrow.
In this article, you will learn about five mistakes to avoid as you incorporate ESOPs into your business.
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Business succession planning is a hot topic amongst enterprise owners today. You spent a lifetime building a company and took great care to make it the success that it is. You want to take the same amount of care in planning its transition from you at the helm to your chosen successor/s taking full control.
You’ve done your homework—you know what options are available to you. You know you don’t want to sell the business, and you also don’t want to close it.
And you’ve taken care to choose someone you really feel just “gets” your business and can take it into the future.
One of the options you’re strongly considering is an Employee Stock Ownership Plan or ESOP. But… you’re not entirely certain how it works or even if it’s the right plan for you.
You have a lot of questions. Will this type of plan be attractive to my employees? Will I have to give up too much control too soon? Would it be fiscally wiser for me to consider an outright sale to a third party? How much of my company’s confidential financial records do I have to expose to shareholders?
These are good questions. A wise company owner considers every angle before making such an important decision.
Check out our blog at http://www.gbhcpas.com/blog/esops-debunking-the-top-5-misconceptions to discover the five most common misconceptions about ESOPs.
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You’ve spent your life building your business. You wear your successes and life lessons on your sleeve with pride. Yet with each ticking of the clock, you realize that time is passing by and that you must prepare for a future where you take on a different role in regard to your company as you pass the reins to your successor.
Where to start? That’s the big question! The idea of trying to prepare to leave something that you’ve invested so much into is tough to wrap your mind around. Breaking it down into manageable steps can seem overwhelming.
The truth is there is that there is no cookie cutter answer. Every business must prepare for its founder(s) to move away from an active role and for new leadership to step in. But what this looks like for each company will be as unique as the products and services each offers.
In seeking the right exit strategy for you, there are many options to consider. Some are better suited to your company’s specific needs than others. Here you will find a list of four directions forward for your business on the road to a successful transition as you prepare for your retirement years. Read more at: http://www.gbhcpas.com/blog/4-valuable-strategies-for-business-succession-planning
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As much as you love your businesses, you must admit that retirement is an attractive idea. You dream of relaxed mornings sipping coffee by a roaring fire or leisurely reading the newspaper on a sunny day with nothing calling us to abandon your leisure and get to work.
It can happen. For many of us, it will happen soon. But before we can fade into the glorious sunset of retirement, we have a job to get done.
We have to deal with the next step – what to do with the business.
Maybe you can’t yet imagine your business without you at the helm. It’s definitely hard to do. You’ve invested your life in the development of this entity. But whether you have five years or fifteen years before retirement, it’s important to start putting processes in place to ease the transition from a corporation you are 100% hands on with to a business that will become the responsibility of your successors going forward.
You need to start developing your exit plan.
No two businesses are exactly the same, and the design of your exit strategy will be as unique as the service that you provide. Here are four simple business succession concepts to consider in preparing your retirement plan.
Read more at http://www.gbhcpas.com/blog/4-valuable-strategies-for-business-succession-planning
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