“Succession Planning in my business – Quick Quiz”
Succession Planning in or for your business is not an easy decision to make.
Succession Planning is as much emotional as it is commercial.
First of all how ready are you to look at succession planning?
Start by considering these 10-questions.
Here are some simple questions. Answer them as best you can on a scale of A to D where A is where you feel you are not ready and D is where you feel you are ready.
A=0 B= 2 C=3 D=5
1. Do you know how much income you require to earn in retirement; the value of those income generating assets ?
2. Do you have a compelling reason to want to move away from the business such as plans to do something else?
3. Have you considered what you will do afterwards?
4. Do you feel your passion for the business has been replaced by exhaustion?
5. How confident are you about obtaining a buyer for the business?
6. Do you feel it is time someone else needs to take the business to another level before it is too late?
7. How confident are you about setting out to sell your business to maximise the price?
8. How confident are you of the right time to sell your business?
9. Are you confident about the alternative ways in which you can step away from your business?
10. How do you feel about working for someone else?
Calculating your Score Based on 10 questions.
Therefore, your score is calculated by assigning 0 points for every “A” answer you gave in the quiz, 2 points for every “B” answer, 3 points for every “C” answer and 5 points for every “D” answer.
Keep in mind that these are general guidelines and each person’s situation is unique. Ultimately, succession planning is a personal decision which you, the business owner can only make. Therefore, use this test as a guide and then talk to me.
Less than 20 points: You are not in the right mind-set to consider succession planning. Leave it for now until you are in a better frame of mind. Come back to the questions in a year’s time.
20-29 points: You are starting to think about succession planning and you are almost ready. Just repeat the quiz over the next six months’ time and see how your score changes.
30-39 points: You are ready to go onto the path of committing to looking at the options for succession planning. What needs to be done to find a buyer and maximise the value and the chances of selling.
40-50 points: You need to seriously consider some proactive marketing of the business now in order to clarify your options. See if there is an interest and what type of offer you will receive. Is it realistic for your needs. Look at the answers where you scored a “B” or below. Do we need to look at these first?
What to do next?
Andrew Watkin has regular discussions with business owners who are considering succession planning but are not confident about where they are, what needs to be done and how to actively market the business to see if it is sellable and to whom.
Above all, Andrew Watkin can help you to help identify the specific steps that you need to take in your business. So get in touch with him now by calling him on 07860 898452 or by email: firstname.lastname@example.org to discuss how he can help you decide that stepping away from your business is something you can do and move onto the next stage in your life.