[et_pb_section fb_built=”1″ _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”||6px|||” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.21.0″ _module_preset=”default” min_height=”37.3px” custom_margin=”-73px|auto|-13px|auto|false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.24.1″ _module_preset=”default” custom_margin=”||13px|||” global_colors_info=”{}”]<\/p>\n
<\/span><\/p>\n It\u2019s time to transition out of your business. <\/span>\u00a0<\/span><\/p>\n You\u2019ve built it up, created systems and efficiencies along the way, and are ready to step back or all the way out.\u00a0<\/span>\u00a0<\/span><\/p>\n But what\u2019s the wisest first move? There isn\u2019t a manual or one-size-fits-all approach to transitioning away from your business.\u00a0<\/span>\u00a0<\/span><\/p>\n This process is dynamic, which is why it is vital to document your processes to make this transition as seamless as possible.\u00a0<\/span>\u00a0<\/span><\/p>\n There are a variety of ways to exit your business, including leaving it as a legacy to a future generation or grooming the next manager. But regardless of what\u2019s next for your business, it is essential to have a strong plan in place.\u00a0<\/span>\u00a0<\/span><\/p>\n For this article\u2019s purposes, we\u2019ll explore ways to prepare your business for a future sale (rather than secondary management or legacy strategy).<\/em><\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”11px||9px|||” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_2,1_2″ _builder_version=”4.27.2″ _module_preset=”default” custom_margin=”|auto|40px|auto|false|false” custom_margin_tablet=”30px|||141px|false|false” custom_margin_phone=”-10px|||-12px|false|false” custom_margin_last_edited=”on|desktop” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/ecngx364.inmotionhosting.com\/~capcon7\/wp-content\/uploads\/Plan.png” title_text=”Plan” _builder_version=”4.27.2″ _module_preset=”default” transform_scale=”244%|244%” transform_translate=”48px|41px” custom_margin_tablet=”” custom_margin_phone=”-62px||||false|false” custom_margin_last_edited=”on|desktop” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text ul_item_indent=”20px” _builder_version=”4.27.2″ _module_preset=”default” ul_text_align=”left” width=”98.1%” width_tablet=”98.1%” width_phone=”98.1%” width_last_edited=”on|phone” max_width=”100%” custom_margin=”|-53px||-22px||” custom_margin_tablet=”277px|0px|0px|-146px|false|false” custom_margin_phone=”165px|-8px||4px|false|false” custom_margin_last_edited=”on|tablet” custom_padding=”|0px||0px|false|false” global_colors_info=”{}”]<\/p>\n Many leaders get so caught up in strategizing their exit that they neglect to set a solid transition plan in place. But without a plan to show future buyers, you could lose a huge percentage of your company\u2019s worth!<\/span>\u00a0<\/span><\/p>\n Additionally, owners often hold valuable institutional knowledge about their businesses, from client relationships to operational nuances. It is vital that you document and transfer this information through a succession plan so that the incoming owner can maintain the systems you put in place.\u00a0<\/span>\u00a0<\/span><\/p>\n We’re diving into the \u201cwhy\u2019s\u201d of planning: why having your own processes documented is crucial for future leaders <\/span>to take<\/span> on your business as you step back.\u00a0<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”0px||4px|||” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.24.1″ _module_preset=”default” min_height=”347.8px” custom_margin=”1px|0px|1px|0px|false|false” custom_padding=”10px|0px|10px|0px|false|false” global_colors_info=”{}”]<\/p>\n <\/span><\/p>\n Before the next leader can plan their own innovations <\/span>to <\/span>for<\/span> the organization, they\u2019ll need to have a solid track record of what your business has done in the past.\u00a0<\/span>\u00a0<\/span><\/p>\n Anyone who acquires your business will want assurance that the organization they\u2019ll be leading has a stable and well-defined future. They\u2019re typically looking for businesses with a set roadmap for the future, and the absence of a succession plan sends a serious red flag about the company’s long-term viability.<\/span>\u00a0<\/span><\/p>\n This business history can encompass a wide range of information, including things like the business\u2019s internal culture, finances, and missional goals to date.\u00a0<\/span>\u00a0<\/span><\/p>\n Your transition plan relies on your ability to answer questions like…<\/span> <\/span><\/p>\n \u00a0\u27a1\ufe0f What does the org chart look like now? <\/span>\u00a0<\/span><\/p>\n \u00a0\u27a1\ufe0f What will it look like in <\/span>future <\/span>the future<\/span>? <\/span><\/p>\n \u00a0\u27a1\ufe0f Who is capable of fulfilling these goals? <\/span>\u00a0<\/span><\/p>\n If you don\u2019t draft and implement a clear plan, you\u2019re creating uncertainty for potential buyers.\u00a0<\/span>\u00a0<\/span><\/p>\n Without a succession plan, the transition from the current leadership to the new one becomes unclear, raising concerns for buyers and\/or incoming leadership. And no one likes uncertainty!<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”2px||0px|||” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_2,1_2″ _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”||33px|0px|false|false” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text ul_item_indent=”20px” ol_item_indent=”20px” _builder_version=”4.24.1″ _module_preset=”default” custom_padding=”5px||5px||false|false” global_colors_info=”{}”]<\/p>\n <\/span><\/p>\n A business without an internal roadmap will likely sell for <\/span>less <\/span><\/i>than its true worth.\u00a0<\/span>\u00a0<\/span><\/p>\n The value of a business will erode without a plan in place because <\/span>its<\/span> worth isn\u2019t just about its current profitability. It\u2019s also determined by its <\/span>potential <\/span><\/i>for sustained success. Without a smooth transition process in place, future leadership may doubt the business’s ability to continue operating efficiently under new ownership, impacting its perceived value.<\/span>\u00a0<\/span><\/p>\n Without detailed documentation of the who-what-how of your business, new leadership won\u2019t have much confidence in the company’s ability to turn a profit in the future.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/ecngx364.inmotionhosting.com\/~capcon7\/wp-content\/uploads\/S-4.png” alt=”Why this is so important: Value Erosion ” title_text=”S (4)” _builder_version=”4.27.2″ _module_preset=”default” transform_scale=”246%|246%” transform_translate=”65px|38px” custom_margin_tablet=”65px||||false|false” custom_margin_phone=”-35px|||-64px|false|false” custom_margin_last_edited=”on|desktop” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_2,1_2″ _builder_version=”4.27.2″ _module_preset=”default” custom_margin_tablet=”” custom_margin_phone=”91px|||-48px|false|false” custom_margin_last_edited=”on|desktop” custom_padding=”||74px|0px|false|false” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/ecngx364.inmotionhosting.com\/~capcon7\/wp-content\/uploads\/S-3.png” alt=”transition plan” title_text=”S (3)” _builder_version=”4.27.2″ _module_preset=”default” transform_scale=”232%|232%” transform_translate=”62px|44px” custom_margin_tablet=”303px|||18px|false|false” custom_margin_phone=”10px|||-1px|false|false” custom_margin_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.24.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text ul_item_indent=”20px” ol_item_indent=”20px” _builder_version=”4.27.2″ _module_preset=”default” custom_margin_tablet=”262px||||false|false” custom_margin_phone=”174px|||48px|false|false” custom_margin_last_edited=”on|phone” custom_padding=”5px||5px||false|false” global_colors_info=”{}”]<\/p>\n <\/span><\/p>\n Your transition plan should include information about…<\/span>\u00a0<\/span><\/span><\/p>\n 1\ufe0f\u20e3 Who has been running operations, both internal and external <\/span>\u00a0<\/span><\/p>\n 2\ufe0f\u20e3 What their process has been in doing so<\/span> <\/span><\/p>\n 3\ufe0f\u20e3 How they\u2019ve been able to maintain success and hit goals <\/span>\u00a0<\/span><\/p>\n This confidence is vital for a seamless transition and the ongoing success of the business. A well-prepared succession plan outlines how the business will continue to thrive under new leadership, even when you\u2019ve completely exited.\u00a0<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”0px||0px|||” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” min_height=”0px” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n <\/span><\/p>\n Leaving your business goes far beyond a simple transfer of ownership; it also involves managing the entire transition period from one owner to the next.\u00a0<\/span>\u00a0<\/span><\/p>\n At the end of the day, not having a clear and well-executed succession plan can doom your business transition.\u00a0<\/span>\u00a0<\/span><\/p>\n This all requires thorough documentation and reflection. This is where we can help! Our experts<\/a> have extensive experience guiding leaders through this process.\u00a0<\/span>\u00a0<\/span><\/p>\n It\u2019s worth taking the time and effort to create a comprehensive transition plan. Setting up a clear plan prior to selling is an investment in your business\u2019s future. It isn\u2019t just prudent \u2014 it’s essential!<\/span>\u00a0<\/span><\/p>\n <\/span><\/p>\n <\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n [\/et_pb_text][et_pb_post_nav in_same_term=”on” _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_post_nav][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_divider color=”#eeeef0″ _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.2″ _module_preset=”default” header_font=”|600|||||||” header_text_color=”#1D407E” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_blog fullwidth=”off” posts_number=”3″ include_categories=”current” show_thumbnail=”off” show_author=”off” show_date=”off” show_categories=”off” _builder_version=”4.27.2″ _module_preset=”default” header_text_align=”left” header_text_color=”#1D407E” text_orientation=”justified” border_width_all=”0px” global_colors_info=”{}”][\/et_pb_blog][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.21.0″ _module_preset=”default” min_height=”141.9px” custom_margin=”-6px||-50px||false|false” custom_padding=”6px|||||” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.21.0″ _module_preset=”default” background_color=”#4DAD46″ min_height=”225.5px” custom_padding=”|0px||0px|false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_cta title=”Need Fresh Eyes On Your Business?” button_url=”https:\/\/calendly.com\/ccusa-llc\/15-minutes-to-financial-clarity” button_text=”Schedule a Call” _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n We offer complementary consultations to help you identify the areas where you could most quickly and easily improve your business\u2019s performance, value, and profitability. Request one today.<\/p>\n [\/et_pb_cta][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" If you Don\u2019t Have a Leadership Transition Plan, Your Exit Could Fail <\/p>\n","protected":false},"author":9,"featured_media":1238,"comment_status":"closed","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"960","footnotes":""},"categories":[33],"tags":[12],"class_list":["post-1237","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-value","tag-exit-planning"],"yoast_head":"\nWhy Is the Planning Phase So Important?\u00a0<\/span><\/b><\/span><\/h2>\n
How To Begin the Transition: Answering Key Questions <\/span><\/span>\u00a0<\/span><\/span><\/span><\/h2>\n
Why This Is So Important:<\/span> Value Erosion\u00a0\u00a0<\/span><\/span>\u00a0<\/span><\/span><\/h2>\n
What To Include: Creating a <\/span>History<\/span>\u00a0<\/span><\/span>\u00a0<\/span> <\/span><\/span>\u00a0<\/span><\/span><\/span><\/h2>\n
In Conclusion…<\/span><\/span>\u00a0<\/span><\/h2>\n
At Capital Concepts USA<\/strong>, we have financial, marketing and sales, and operations consultants who can work with you to craft a plan and set goals that will make a difference in your business. <\/strong>Contact us today for a\u00a0free 15-minute call <\/a>with our founder, Lorne Greenfield.<\/a><\/strong><\/em><\/h4>\n
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