What You Need to Know When You Are Transitioning
Life and business changes take time and effort to plan. We’re here to help with Business Owner Planning, offering you complimentary advice to help achieve your personal and business goals.
Preparing for Business Transition
Your RBC Business Advisor will work with you to:
- Understand your business owner needs and goals, whether you want to grow or sell your business, or plan for your next adventure
- Complete a complimentary Business Owner Plan
- Discuss the right financial products and solutions to take you to the next stage in your journey
Benefits of Business Owner Planning
Benefits of planning your transition in advance:
- Locks in security for you and your family, and addresses tax and estate planning
- Provides contingencies if, for any reason, you’re unable to run your business
- Assists with strategic direction for the future growth of the business
If you’re passing all or part of the business to a family member, then it’s important to help them take over as seamlessly as possible. They may already be working in the business in some way and be familiar with the business operation. To make this even easier consider:
- Introducing your successor to your RBC Business Advisor, key suppliers and customers to ensure it’s business as usual after taking over
- Documenting your ‘business know how’ such as how you do business, any processes, how you source products or components, marketing, how you hire, how you price or pitch for contracts
- Outlining key employees and how you develop your team
- Being able to actually let go and let your successor make decisions without you – consider leaving the business for a period as a test run to identify any issues while you’re away as a first step
For many owners selling the business is the ultimate end goal, where you get to realize the value of all your hard work with a clean sale to another person (which could be an employee or someone outside the business). Other owners may decide it’s more beneficial for them and the business to merge with a complementary business, or you may find yourself in a position of being acquired by another company. Each of these scenarios will require you to consider a number of aspects:
- How to maximise the value of the business before you sell
- How to find buyers for your business
- Outlining the core value of the business such as any intellectual property or assets
- On-boarding any new owner by introducing s/he to your RBC Business Advisor, suppliers and customers
If you’ve transitioned your business, you’ll be thinking about what the future holds. Some of the areas you may consider are:
- Your retirement. It’s your time to focus energy on your lifestyle, family and health.
- Another business. You may have uncovered a new opportunity that you couldn’t explore while you were running your original business.
- Your legacy. You could donate time and money to your charities or your community. Possibly you’ll want to set up an estate for your family to look after them, contribute to the business community or mentor the next generation.