Tax season is in full swing, as business owners are all too aware. While two of the posts listed below should prove helpful for considering the tax implications of transitioning a business, the other two offer a break from the subject of taxes by focusing on how a business transition fits into the bigger picture.
In the spirit of the season, this post from Inc.com discusses some of the strategies you will need to consider for tax purposes as you prepare to sell your business. Proper planning with the help of an expert can greatly reduce your tax burden and help you structure the sale to avoid huge bills from the IRS.
Selling your business is likely part of a bigger picture, namely retirement and what that will look like for you and your family. This post from Forbes addresses the subject in terms of creating a comprehensive plan for retirement income, considering the trade-offs with social security, how much it takes to fund retirement and the best time to leave the working world behind.
Business owners know the importance of having an exit strategy, but when you’re working on your business it can be hard to carve out time to think through a sale you’re not planning to make anytime soon. This podcast from Florida-based brokerage Morgan & Westfield discusses the importance of giving attention to an exit strategy long before selling is on your mind.
This post from law firm Miller Nash Graham & Dunn digs into the details of how tax laws play out in the sale or purchase of a business here in the northwest, shedding light on the laws surrounding business transactions and their real-world application.
The process of selling your business encompasses everything from financial matters to family considerations to the (often unexpected) psychological and emotional effects of suddenly not being an owner. As you shape your plan for transitioning your own business, the following list of articles can help you consider a few of these aspects and how to handle them.
As a business owner looking toward your own retirement, you’re likely aware of the need to prepare your company to run without you. As you hand off the reigns, consider carefully what the generational makeup of your company will communicate to a buyer. This article from Generational Equity sums up the growing issue of brain drain in the marketplace and what you can do to prepare your business to thrive beyond this generation and the next.
Generational differences can be tough to overlook, but stanching the brain drain will likely require bringing on some millennials to ensure your business outlasts your ownership. Tire Business published a series of posts examining the overarching traits of the multiple generations currently active in the workplace. Knowing what you can expect from much of the Y generation can help you define which traits will help your business, which traits to avoid and how to screen for these in your hiring process.
(As a side note, if the very thought of the “everybody gets a trophy” generation makes you roll your eyes, remember not every millennial was happy to receive a trophy inscribed “Participant.”)
Building a business is a long, involved and difficult journey. Signing on the dotted line may signal the official end of your role, but it doesn’t erase the connection you’ve built with your work. Just as you planned for the succession of your business, planning for your life after the sale will help make your own transition smoother. This post from Harvard Business Review confronts the little-discussed issue of transitioning from business owner to retiree, with suggestions for avoiding the emotional fallout.
Transitioning a business demands just as much attention as building one. This Seattle Magazine article covers many of the steps you can expect to take in your transition plan as well as advice for avoiding common pitfalls.