Search Site
Menu

Business Planning: Work on the Business as well as in the Business!

Many small to medium size business owners usually have most of their assets tied to their businesses. This can be challenging from a planning perspective as it relates to short term and long term planning, as well as understanding valuations and creating a succession plan and or an exit strategy. Owners need to devote proper and or needed amounts of time and effort to planning (working on the business) as they do working (in the business). As to an exit strategy, same can can involve a plan for passing on responsibility for running the company and also transferring ownership.  A steady business operation is typically worth more than one that is not steady. Development of a plan is crucial to maximizing valuations related thereto. Developing an effective plan includes considerations of current and future operations, entity changes, personal and or familial statuses as well as potential income and tax implications. Choosing your business successor and how to transfer, sell and or dissolve your business is a fundamental objective of planning and an exit strategy:

  • Transfer ownership to family members or others
  • Employee Stock Option Plan (ESOP)
  • Outright sale to third party
  • Liquidation, Dissolution and Termination

The better your understanding as to these potential options and factors associated therewith, the better you will be able proceed with plan development and then implementation of transition and succession. Also, the valuation is very important as well.  Options to any sale is to consider a strategic partner either by merger or a joint venture. This can be like a marriage, so date (a.k.a. perform due diligence) before you get married and consider a detailed business “prenuptial” (a.k.a. shareholder agreement, operating agreement, etc.) to memorialize same.

The sooner you start planning, the easier it will be. Now is always a good time to begin planning for succession and or creation of an exit strategy. We can help you with planning and other business matters of concern. Contact us at [email protected] or call us at 856-428-5577.

Office Address
Haddonfield Office
35 Kings Highway East
Ste. 212
Haddonfield, New Jersey 08033-0186
Phone: 856-428-5577
Text: 856-272-1954
Fax: 856-428-5969

Mailing Address
P.O. Box 284
Haddonfield, New Jersey 08033-0186
Phone: 856-428-5577