How to Properly Close a Small Business or Pass it on?
It is always important to have an exit strategy for the family business. It is advisable to have a system in place where the family business can leave a legacy. Many great businesses like Walmart, DuPont, Johnson & Johnson, Ford, etc. are still in existence because the individuals who started the business ensured that a legacy system was in place. With these companies the founders ensured that the business would remain in the family by setting a program to do so.
When you start a business should ensure to leave behind a legacy, it is sad when a family business cannot survive beyond the person who started the business. It is always wise to have a plan in place to determine who will take over the family business, if the business will be sold at a certain point in time, or will the business be closed after several years of being in operation. The family business should be seen as a separate entity from the owners that can stand on its own and survive once the founders of the business have passed on.
Many family businesses are starting to survive beyond the founders of the business because individuals are starting to understand the importance of leaving a legacy for future generations. Some family owned businesses are being bought up by bigger companies because the family may be tired of running the business or there is no family member to take over the business. Having a family business takes a lot of thought and planning for the beginning phase and ending phase of the business.
It is very important to have an exit strategy for the family business because it makes it very easy to close the business, sale the business to someone else or another company, or pass the business on to the next generation. As entrepreneurs, we must understand that nothing lasts forever, everything comes to an end, or someone else has to take over the reins of the small business. It is very important to not only write out plans for starting the business, but it is important to write the plans to end the business, pass it on, or sell the business.
Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience. Donya is also a public speaker and aspiring author. She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals. She is owner of Family & Community Mediation and Business Consulting (FACMBC) and Powerful Biz Woman (subsidiary of FACMBC). Both are based in Baltimore, Maryland and were established in 2013. Services provided by FACMBC: Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance. She is also a contributing writer with the Maryland Daily Examiner Newspaper and the Leadership Girl Newsletter. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle.
If you are thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information: firstname.lastname@example.org; www.facebook.com/FACMBC; www.twitter.com/FACMBC; https://dzimmerman36.wordpress.com; http://www.linkedin.com/in/dzbusconsultantandmediator
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