Building a business takes years of commitment and effort. With maturity, one would understand that his or her participation in the business cannot last forever. At a certain moment in time, one would accept that the reigns must be slowly released and in this respect, consultants at 121 may assist with ensuring a smooth transition.
The process of transition can bring about several difficulties, which is why a tailored approach needs to be adopted. Most businesses do not make it past the third generation which underscores that succession is not a straightforward process. This can also be attributed to the fact that different generations may aim to undertake significant changes which in the long term could be detrimental to the business. One of the ways that a business can ensure a smoother transition and cushion the impact of change is by documenting existing processes and ascertaining adequate implementation.
Selling a business
A business owner may decide to call it a day, especially if his children would be less inclined to continue on with the organisation. In such instances, many business owners work to sell their companies to others. This too involves an extensive process. Sourcing the right buyer takes time and effort. Negotiating the right price for your business is also a delicate process. In this regard, consultants at 121 may assist you with identifying a suitable buyer, leading to a mutually beneficial transaction.
Another common strategy is for a business owner to stage a slow exit. This may include a process whereby duties are slowly relinquished. There are several ways how to do this. Such can include slowly selling a set percentage of the company year on year, so that the leader of the business does not leave the organisation at once, but through a slow and contained approach.
Another reason why a business owner might be planning an exit strategy is due to retirement. After an extensive career, one may be looking forward to some relaxation which can be offered by taking a step back and retiring. Retirement brings about a new phase in life and one would want to be assured that the business is left in good hands once the time comes. Following a long career, consultants at 121 may assist you with your retirement planning and related wealth management.