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  Exit Strategy And Succession Planning

  When is the right time to exit? What would happen to your business when you do?

  Can your company survive without you in charge? What if one or more of your key personnel left -- can the organization survive their departure? Do you know when you want to retire or take a lesser role? Have you considered the different scenarios that can occur affecting the organization?

  Unfortunately, because of the demands of daily activities, for most business owners these subjects are at or near the bottom of their to do list. And yet, they are critical for your business and for your family. Having comprehensive strategies for the safe succession of key functions can make a significant difference in enabling you to salvage your business in dire situations.

  Not knowing what life has in store for you or for your employees —for business issues, health, family, etc.—you need to be prepared, and having well-thought-out plans in case the unexpected happens can give you peace of mind. This SkillBite contains the key issues you need to address and the steps to take to develop a plan to cover the company’s needs when you or other key personnel leave the company (a succession plan), and a plan to cover your own needs for when you leave the business (exit planning).

  Exit strategy and succession planning are two subjects that go together; they are complementary to each other and dependent on each other. If you think about exiting your business, you must plan on succession and when you develop a plan of succession for your company, you must consider your thoughts about exiting the business.

  Your exit from the business can be on your terms (voluntary) or not on your terms (involuntary). Voluntary means that you elect when and how you exit and involuntary means that you exit because of death, disability or other unpredictable events. You need to cover both instances in separate plans. In addition, and as a necessary complement, you also need a succession strategy.
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  Time to Think and to Plan

  As a business owner you probably have much of your net worth tied up in your company. The trick is turning that stock into cash when it is time to retire. However, the BIG question is "when to retire and how?"

  Business owners begin thinking about exit planning and succession strategies when they start feeling that they want to do something besides go to work everyday. This could be because they would prefer to be doing something else, or they simply no longer get the same kick out of doing what they do. The "fire in their belly" is not burning as it once did.

  Another motivator can be the nice feeling of approaching financial independence by selling the business ("cashing in") or at least part of it ("taking money off the table"). When these two thoughts grow in intensity and/or frequency, business owners may start leaning towards exiting the business.

  In other cases, exiting can be a goal for which the owner has worked long and hard, rather than just the termination of a cycle. When you develop your exit strategy, you can preserve and control your own entrepreneurial destiny. Whether it is a goal or a final point of a "life-dream", do what is right for you and plan, plan, plan.

  An exit plan must be in place for owners to be able to leave the business maximizing benefits. Exit planning is the tool that would make it possible for you to leave the business on your terms and schedule.
• About The Author
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  Oswald R. Viva is the founder and President of V&A Management, LLC; a consulting company founded in 1985, now dedicated to helping small and midsize businesses. He has over 20 years of top corporate management in large and small companies, including multiple "C" Level positions, 15 years as consultant in high-tech and manufacturing industries worldwide, and eleven years as CEO and executive coach for small and midsize businesses.

  Oswald participated in eight startups either as a Principal and Founder or as a consultant in an acting leadership position, including multiple CEO positions. He was also the owner of one of the most successful franchises of The Alternative Board (TAB). He has served in the Board of Directors of eight entrepreneurial companies in various fields.

  He is the author of “Its Lonely at the Top”; “A Practical Guide to Becoming a Better Leader of Your Small Company” published by iUniversal, September 2011.

  His education includes degrees in Mechanical Engineering and extensive training in Business Administration, Finance and Management. He is a Certified Management Consultant, Coach and Facilitator, a member of the National Federation of Independent Businesses, and a member of the Fortune Business Leaders council. He is the inventor of record in several patents and has received several awards in the management and entrepreneurial field.

  Born in Argentina, he migrated to the US fifty-three years ago. He has been married to the love of his life for fifty-three years and resides in Acworth, GA. He is the father of four and grandfather of twelve.

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