NORTH ATTLEBORO, Massachusetts – All business owners will eventually leave their business. They began their venture with a business plan, yet chances are they will leave the business without an exit strategy. This opens the door to tremendous risk.
According to Mark Lee, CPA, MBA, co-founder of Business Legacy Consulting, business owners have many issues to consider when exiting a business.
“We are talking about people who enjoyed success in the business world, made major decisions that affected lives on a daily basis – all of a sudden, it’s over,” said Lee. “They used to lead a company but now who are they?”
Many questions arise for business owners who will leave their business. How will their minds be challenged now? What will keep them going? What are they going to do with their time? Are they going to be able to provide for their families once the business is gone? Will they be able to afford the lifestyle that they want, or even the one that they have enjoyed as a business owner?
Business Legacy Consulting addresses the issues of strategic exit planning for businesses in three distinct areas: financial readiness to leave a business; mental and emotional readiness for departure; and maximizing the value of a business prior to transition. The firm works with business owners to identify goals, recognize what the life-after-work transition will be, and to create their personal and professional legacy.
“My father was a very small business owner,” said Lee. “The last business he owned was a corner variety store in Middleton, Massachusetts. Watching him at work, it was easy to tell he most loved interacting with people. His regular customers who stopped in for beer, milk, sandwiches, and lottery tickets were like family.”
“When he and his partner sold the store, my father was 66 years old and he had no plan for the future,” said Lee. “His new daily routine consisted of reading the Boston Globe and Boston Herald from cover to cover and doing errands with my step-mother. All of a sudden, most of his contact with people was gone.”
“I always told him to go get a job packing bags in a grocery store just to be around people, which he never did,” said Lee. “My father died at age 68. We will never know if there was any connection between the cancer he developed and his lack of any significant activity in his life after his retirement. I believe there was to some degree.”
“We help owners craft an exit plan that meets their financial goals, identifies what they are going to do with their time and resources in the next phase of their life, and preserves their legacy,” said Lee.
Whether a business owner is three, five or seven years away from transitioning out, Business Legacy Consulting helps craft and implement a transition plan that enables owners to achieve personal and professional goals.
“Exiting a business is the most important and emotional decision of a business owner’s life,” said Karen Benz, MS, “Certified Professional Behavioral Analyst” and co-founder of Business Legacy Consulting. “Transition often leads to stress or family conflict in a business and there is great need to establish clarification of roles and responsibilities of family members who are either leaving or entering the business.”
Benz cites other issues that require conflict resolution including inequities in family compensation plans and family communication about work/family boundaries.
Strategic exit planning provides a roadmap for the future through the development of goals, objectives and performance metrics. It is a process which determines the owner’s priorities. Are they financially ready? Can they live the lifestyle they want? Are they emotionally ready for the next phase in life? Is the business ready and functioning at an optimal level?
“One of our clients was interested in finding out when her father was going to retire from the family business,” said Lee. “The father avoided talking about it and she wanted us to initiate that conversation with him to start planning for how the transition would eventually take place. We knew this would be a difficult and delicate conversation. “
“We had the conversation with both him and his wife,” said Lee. “We talked about their goals and determined where they were financially. We talked with each member of the family management team and determined their readiness to take over the business. We assessed the readiness of the business for transition through a careful analysis.”
With support and guidance of Business Legacy Consulting, the client was able to take the reins of this business with confidence, knowing she had her father’s support. Her father’s legacy of high quality care and service to his customers will be continued through his family.
About Business Legacy Consultants (www.businesslegacyconsulting.com)
Established by Mark Lee and Karen Benz, Business Legacy Consulting is based in North Attleboro, Massachusetts and services clients throughout New England.
Mark D. Lee, CPA, MBA has a passion for helping business owners succeed in business and life. He provides a full range of consulting and financial services to his clients, with an emphasis on financial and operational strategies that maximize profits and cash flow, while minimizing taxes. Lee has extensive experience in business planning, evaluation of business systems and general management services for manufacturers, high technology, restaurants, real estate, consulting, and contractors.
Karen Benz, MS, “Certified Professional Behavioral Analyst,” specializes in business consulting, strategy and leadership development with an emphasis on improving individual and organizational performance. She has owned a consulting practice since 1996 working with clients in many industries including manufacturing, finance, hospitality, health care, and non-profits.
For a free consultation, email info@businesslegacyconsulting.com or call 508-639-9879.
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