By DOUG WILLIAMS
Grow Hays

You Gotta Have a Plan!

There is an old saying that if you don’t know where you are going, any road will take you there.

It is usually used in the context of the need to create objectives in your business or personal life but also applies to business succession planning.

Business retention is a key component of our mission at Grow Hays. We want to help all businesses grow and prosper in any way we can and we are seeing a growing number of instances where business retention and continuity are threatened by the lack of having a succession plan.

Succession planning takes on many forms. Yes, it can certainly involve the sale of the business but also includes planning for unforeseen events. Death, health issues, disability and divorce can all have a significant impact on a business and should be a part of a well thought out succession plan strategy.

Many business owners give little thought to succession planning for a variety of reasons. They are busy operating their business and dealing with all of the day to day issues that involves. They are busy in their personal lives raising families and the challenges that brings and it is also something they really don’t want to think about.

It’s a bit like buying life insurance. You know you probably need it but the prospect of “using” it isn’t very attractive! That being said it is important that every business owner gives thought and consideration to what their succession plan is and that they involve the professionals they use in operating their business to develop it.

Accountants, lawyers, bankers, financial advisors, and any other professionals that have an understanding of their personal and business status are critical resources in the development of a succession plan.

One thing is certain. Every business owner is going to leave their business at some point.

Ideally, it will be through the sale of the business to a new owner that continues to own and operate the business and provide the same quality products and services that the business provides under the existing owner.

Unfortunately, that doesn’t always happen so it is important that every business owner develops a succession plan to make sure as many of the bases are covered as possible. Remember, the lack of a succession plan is a threat to a business owner’s family, employees, customers and the community.

You gotta have a plan!

Doug Williams is executive director of Grow Hays.