Truist-Perspectives-AUGUST_2021

Insights: Business
It’s never too early
to start planning.
The ideal time to begin planning your exit is when you
start your business, but very few business owners actually
do that. If you haven’t already started planning, why not
start today?
“You read a book front to back because you enjoy the
suspense of wondering how it will end. But that’s not how
you should run a business,” says Sanders. “What tangible
and intangible benefits do you get out of the business?
What would you like a transition to look like? What will
you do next if you are not working for the business? Think
about these questions first, not last.”
At the very least, begin planning a few years ahead of
when you know you want to exit. “It’s a big job to create a
transition plan; you can’t just run a calculation and quickly
figure out all of the answers,” says Sanders. “You’ve got
to really think about the bigger things in life, and that is
difficult for many business owners. Give yourself time to
do it right.”
It’s an evolution.
Not the end.
Dive deeper:
Preparing for
transition
As a business owner,
you have options for
how you transition
away from your
business—and who
you leave in charge.
Learn more about how
business transition
planning lets you leave
your company in the
best hands by reading
our infographic,
“Preparation puts
transitions to work.”
Remember that business transitions are not the end of life
as you know it, but merely an evolution to the next phase
of your life. How well you plan for this shift will impact
how satisfied you’ll be with the outcome.
Sanders says that while maximizing sales proceeds is
important, what you do with the proceeds (and yourself)
after the transition is just as important. This phase of the
business transition planning process often is overlooked.
“As a result,” he says, “many business owners experience
a lack of direction or a sense of loss after they exit the
business.”
Effective business transition planning is more than just a
tactical decision that’s made right before a sale. Rather,
it accounts for decisions that need to be made before the
event, during the event, and after the event.
Preparation is key, and that includes having a personal
wealth and/or family legacy plan that can help you
evaluate strategic alternatives for your business and
ensure the best possible outcome.
August 2021 | 11