Seven Steps to Your Ownership Conversion Plan™
Creating a consciously designed Ownership Conversion Plan™ (OCP) ensures business owners are in full control of a realistic and timely approach to passing on their businesses. An effective OCP is achieved in seven key steps:
- Cement Your Future Vision – Start by assessing your retirement goals. What is your ideal vision for your business, your family, and your retirement?
- The Size of the Pot – Take stock of your assets. What is the value of the business and what assets do you have that can yield income outside of the business?
- Turning Your Business Into a Butterfly – Make your business as attractive as possible for buyers. Are you ready to take the deep dive into every aspect of your business?
- The Empty Chair – Plan for your business to run with or without you. Don’t wait for an emergency to surface in order to plan how your business will operate without you. What plan do you have in place in case you are unable to continue working in the business?
- Your Personal Hedge – Establish income outside of your business. Few business owners can rely on the money from their business to cover all of their retirement needs. What other assets or income streams have you established that will help you in retirement?
- The Intersection: Choosing your Inside/Outside Sale Option – Find the best sales option that works for you and your business. Will you sell or transfer your business to inside buyers, family members or to an outside buyer? Whichever route you take, there is considerable planning involved.
- The Harvest: Reaping Everything Your Efforts Have Achieved – The reward for your careful planning is receiving the maximum value of the conversion with the highest after-tax cash in your pocket. How will you maximize your conversion?
This outline will help to map out your journey to business succession. Much more on each step is covered in my book. My goal is to help business owners achieve the strongest return for the sale of their business to outside or inside buyers with as little issues, stress, and risks possible. Are you ready to take that first step?