Planning for the Future
You have worked hard on building your business, it might have been just a few years or many decades; but now is the time to ask the question, what is next?
If it is time to walk away and enjoy the next phase of your life, you need to develop a plan for closing, selling, transferring ownership or maintaining the operations of the business. It may not be as easy as turning off the lights and locking the doors. There are a number of things that needs to be completed before you can run to the coast and enjoy sunsets on the beach.
FUNEL has the expertise and knowledge to help you transition your business to what is next.
If it is time to walk away and enjoy the next phase of your life, you need to develop a plan for closing, selling, transferring ownership or maintaining the operations of the business. It may not be as easy as turning off the lights and locking the doors. There are a number of things that needs to be completed before you can run to the coast and enjoy sunsets on the beach.
FUNEL has the expertise and knowledge to help you transition your business to what is next.
I. Close Your Business
TURN OFF THE LIGHTS AND LOCK THE DOOR
Closing your business can be a difficult choice to make but if that is the decision, FUNEL can help with planning your exit strategy. We have a team of lawyers, accountants and bankers to you with every step to ensure all legal and financial matters are correctly handled to properly close your business.
Some general steps to follow for closing your business:
We understand that you may have additional questions and we are here to help and support your decision to close your business. Please contact us today if you need more assistance.
Closing your business can be a difficult choice to make but if that is the decision, FUNEL can help with planning your exit strategy. We have a team of lawyers, accountants and bankers to you with every step to ensure all legal and financial matters are correctly handled to properly close your business.
Some general steps to follow for closing your business:
- Decide to close. Sole proprietors can decide on their own, but any type of partnership requires the co-owners to agree. Follow your articles of organization and document with a written agreement.
- File dissolution documents. Failure to legally dissolve an LLC or corporation with any state you’re registered in will expose you to continued taxes and filing requirements.
- Cancel registrations, permits, licenses, and business names. Protect your finances and reputation by canceling any of these that you no longer need, including your trade name.
- Comply with employment and labor laws. Reference the Department of Labor’s Worker Adjustment and Retraining Notification Act (WARN) for employee payment after closing, along with other federal and state laws.
- Resolve financial obligations. Handle final returns for income tax and sales tax. Cancel your Employer Identification Number, notify federal and state tax agencies, and follow this checklist from the IRS with instructions on how to close your business.
- Maintain records. You may be legally required to maintain tax and employment records, among other files. Common guidelines advise keeping records for anywhere from three to seven years.
We understand that you may have additional questions and we are here to help and support your decision to close your business. Please contact us today if you need more assistance.
II. Sell Your Business
BUSINESS VALUATION
After careful consideration, you may decide to sell your business. Sound planning can help ensure you cover all your bases. Use business valuation to set a monetary value before marketing to prospective buyers. FUNEL can help you can conduct an evaluation of your business to determine the correct value of your business. It is important to accurately value all property and real estate tied to your small business. This can include intangible assets like brand presence, intellectual property, customer information, and projection of future revenue.
When you’re figuring out how much your business is worth, consider these common valuation methods:
We recommend you contact FUNEL to help with determining the value of your business. We will perform a study on the current business environment around your business; but more importantly, the future business environment such as: city re-development plans, outside corporate investments, and industry trends. The difference between an accurate business valuation and a poor one could cost you thousands of dollars.
Please contact us today for an accurate business valuation for your business.
After careful consideration, you may decide to sell your business. Sound planning can help ensure you cover all your bases. Use business valuation to set a monetary value before marketing to prospective buyers. FUNEL can help you can conduct an evaluation of your business to determine the correct value of your business. It is important to accurately value all property and real estate tied to your small business. This can include intangible assets like brand presence, intellectual property, customer information, and projection of future revenue.
When you’re figuring out how much your business is worth, consider these common valuation methods:
- Income approach. Looks at projected revenue and accounts for potential risks.
- Market approach. Compares your business to other similar businesses that have recently sold.
- Assets approach. Subtracts total business liabilities from the total value of all assets.
We recommend you contact FUNEL to help with determining the value of your business. We will perform a study on the current business environment around your business; but more importantly, the future business environment such as: city re-development plans, outside corporate investments, and industry trends. The difference between an accurate business valuation and a poor one could cost you thousands of dollars.
Please contact us today for an accurate business valuation for your business.
III. Transfer Ownership
A NEW FACE AT THE FRONT OFFICE
Many small business owners will face a time when they need to transfer their ownership rights to another person or entity. This situation is less common, but sometimes it maybe necessary to transfer the ownership of you business. You’ll have a few different options available for doing so.
1. Outright Sale - A situation might occur when you need to leave a business but do not want to shut down operations. There might be an emergency that requires attention and you need a quick exit and quick cash. By selling a business in full, you will transfer ownership immediately and receive payment right away.
2. Gradual Sale - It may be that you want to spend more time with your family and not so much time at the business. You can transfer business ownership, so you no longer have to worry about running the business but still receiving a monthly income. This option often benefits individuals that can’t afford an outright sale, but instead are able to finance a long-term payment plan. A gradual sale is a flexible option for transferring a business.
3. Lease Agreement - You might want to take that long deserved year-long cruise vacation around the world. While you are on vacation, you decided to transfer ownership to a friend through a lease. By transferring your business ownership through a lease, you'll commit to a contract that details the conditions and payments you'll receive for the temporary rights to the business.
Transfer of Ownership actions are fairly quick and simple. We work with lawyers that specialize in these types of business transactions, if you are in one of these situations and need assistance, FUNEL is here to help.
Many small business owners will face a time when they need to transfer their ownership rights to another person or entity. This situation is less common, but sometimes it maybe necessary to transfer the ownership of you business. You’ll have a few different options available for doing so.
1. Outright Sale - A situation might occur when you need to leave a business but do not want to shut down operations. There might be an emergency that requires attention and you need a quick exit and quick cash. By selling a business in full, you will transfer ownership immediately and receive payment right away.
2. Gradual Sale - It may be that you want to spend more time with your family and not so much time at the business. You can transfer business ownership, so you no longer have to worry about running the business but still receiving a monthly income. This option often benefits individuals that can’t afford an outright sale, but instead are able to finance a long-term payment plan. A gradual sale is a flexible option for transferring a business.
3. Lease Agreement - You might want to take that long deserved year-long cruise vacation around the world. While you are on vacation, you decided to transfer ownership to a friend through a lease. By transferring your business ownership through a lease, you'll commit to a contract that details the conditions and payments you'll receive for the temporary rights to the business.
Transfer of Ownership actions are fairly quick and simple. We work with lawyers that specialize in these types of business transactions, if you are in one of these situations and need assistance, FUNEL is here to help.
IV. Succession Plan
FUTURE OF THE COMPANY
You can’t run a business, regardless of its size, without talented people ready to move into key positions when the current occupants leave. Even the most successful employers can run off a cliff if they don’t have a solid succession plan in place. Succession planning is a strategy for identifying and developing future leaders at your company — not just at the top but for major roles at all levels. It helps your business prepare for all contingencies by preparing high-potential workers for advancement.
Here are four tips for kick-starting the succession planning process at your company:
1. Be proactive with a plan: You need a plan — now. Consider all the key roles on your team and answer these two questions:
2. Pinpoint succession candidates: While the obvious successor to a role may be the person who is immediately next in line in the organizational chart, don’t discount other promising employees. Look for people who display the skills necessary to thrive in higher positions, regardless of their current title.
3. Do a trial run of your succession plan: Don’t wait until there’s a crisis to test whether an employee has the right stuff to assume a more advanced role. Have a potential successor assume responsibilities of a manager who’s on vacation. They will gain valuable experience and appreciate the opportunity to shine.
4. Think about your own successor: When making a succession plan for your organization, keep in mind that your own role will someday require backfilling. Maybe you’ll decide to take advantage of a new opportunity, or you’ll put in your time and retire from the workforce. What can you do to help that person prepare for the transition?
The members of your workforce aren’t fixed assets — and changes in your team’s lineup are inevitable. You may not always be able to predict a valued employee’s departure from the firm. But through effective succession planning, you can pave the way for the continuity so critical to your business’s future. FUNEL can help with developing a succession plan tailored for your business and its future leadership team.
You can’t run a business, regardless of its size, without talented people ready to move into key positions when the current occupants leave. Even the most successful employers can run off a cliff if they don’t have a solid succession plan in place. Succession planning is a strategy for identifying and developing future leaders at your company — not just at the top but for major roles at all levels. It helps your business prepare for all contingencies by preparing high-potential workers for advancement.
Here are four tips for kick-starting the succession planning process at your company:
1. Be proactive with a plan: You need a plan — now. Consider all the key roles on your team and answer these two questions:
- What’s the day-to-day impact of X position on our company or department?
- If the person currently in X position left, how would that affect our operations?
2. Pinpoint succession candidates: While the obvious successor to a role may be the person who is immediately next in line in the organizational chart, don’t discount other promising employees. Look for people who display the skills necessary to thrive in higher positions, regardless of their current title.
3. Do a trial run of your succession plan: Don’t wait until there’s a crisis to test whether an employee has the right stuff to assume a more advanced role. Have a potential successor assume responsibilities of a manager who’s on vacation. They will gain valuable experience and appreciate the opportunity to shine.
4. Think about your own successor: When making a succession plan for your organization, keep in mind that your own role will someday require backfilling. Maybe you’ll decide to take advantage of a new opportunity, or you’ll put in your time and retire from the workforce. What can you do to help that person prepare for the transition?
The members of your workforce aren’t fixed assets — and changes in your team’s lineup are inevitable. You may not always be able to predict a valued employee’s departure from the firm. But through effective succession planning, you can pave the way for the continuity so critical to your business’s future. FUNEL can help with developing a succession plan tailored for your business and its future leadership team.