Jack Mencini and Adam Sonnhalter, small business owners and coaches with Maximum Value Partners discuss a common myth of small business: Transferring the business to the kids is a good exit plan.
When you start a business, you don’t necessarily think about how you will exit or transition to retirement in the future. Many of those businesses have kids that are already part of the business and the assumption is that Junior or the daughter will ultimately take over the business when the dad/mom/owner wants to retire.
On their show, Dirty Secrets of Small Business, Jack and Adam debunk this myth about the validity and good sense of the plan to have the business be taken over by the kids.
A growing profitable company should be able to run by anyone without you if all of your key points are in order. They refer to the 7 Keys to Success in how to have your business be set for transfer to new owners when it is time.
It is also very scary for the current employees to look at the kids who are working at the business and don’t bring any additional experience to the table, to be able to take over the business. In most situations, this is not a good fit for the kids, who may not even want the responsibility, or for the business and the employees who would really suffer.
Keep in mind that as you think about transitioning the business, look at other options, many other options, other than automatically thinking that having your kids take over the business is the best solution.
If you have a transition story or a question you would like to share, email or call (firstname.lastname@example.org or 877-849-0670). You can also call into during the show each week at noon (EST) – 1:00 pm on WINT 1330 AM, callto ask your question to the Maximum Value Partners’ coaches!