Posts tagged with: planning early
Todd Nelson’s article, Small Business: Succession market is booming, baby, in the Minnesota Star Tribune on March 30, 2014, about Richard Burrock, lead partner for business succession services at Boulsy is more anecdotal proof of the demand for succession planning from baby boomers.
In his article, Nelson quoted Burrock: “The need for an exit strategy is gaining urgency as the baby boomers who own 40 percent of Minnesota’s private companies approach retirement.”
He quoted statistics Burrock shared: “More than half of the privately owned companies in the country face an ownership change in the next 10 years, yet an estimated 75 percent have no transition plan in place, Burrock said. Those who don’t are unprepared for life after retirement, with successor owners unidentified, tax strategies unaddressed and business responsibilities that largely have defined them soon out of their hands.”
These are all issues that take time to address and execute, which you can’t do if you wait until it’s too late.
These are the same distressing statistics we’ve been sharing for years to educate and encourage baby boomer business owners to take action.
Nelson quoted Burrock as saying: “To do nothing is a disaster in the making. It really takes away their flexibility. What I always say to clients is, if we plan it properly, you can have it both ways. You can have a nice soft landing and yet you can accomplish your financial goals at the same time.”
Owners need to hear this statement often.
Richard Burrock is another advisor who honestly telling business owners what they need to hear, not just what they want to hear. I concur with his suggestion “that owners begin planning early, at least five years before retirement.”
Nelson substantiated Burrock’s comments by referencing research by Expert Ritch Sorenson, professor of entrepreneurship and academic director of the Family Business Center at the University of St. Thomas’ Opus College of Business. Sorenson’s succession research “emphasizes the importance of developing a common culture that can sustain and be sustained across generations,”
Sorenson also endorsed the advice to begin business [succession] planning early.
If you have questions about your succession planning readiness, contact us to schedule a free consult.
* emphasis is mine.