Why You Need a Collaborative Team of Advisors
When starting a franchising business, it is important to have clear goals and a vision of what you want to achieve. This will help you stay on track and motivated and guide your decisions and actions, allowing you to make the most out of every opportunity. However, it is equally important to have a backup plan for the future. This is where the help of a collaborative team of advisors, such as a succession planner, lawyer, and CPA, is invaluable.
The first step in setting up your business for what's next is to identify your goals and vision. Ask yourself: What do I want to achieve with this business? Where do I see it in five, 10, or 20 years? Who do I want to pass it on to, and how do I want to do that? Once you have a clear idea of what you want, you can start working towards it.
It is important to remember that circumstances can change and what you want today may not be what you want tomorrow. Weighing out the options before making any major decisions is important. For example, if you consider passing on your business to your children, you should consider whether they are interested and capable of running the business. If not, you may consider creating a management company to oversee operations while you manage the investment, selling all or pieces of it to key leaders, or selling to a compatible third party.
This is where a strategic partner, such as a succession planner, can be helpful. They can help you evaluate your options and make informed decisions based on your goals and circumstances. For example, they can help you determine the value of your business, which is essential if you are considering selling it. They can also help you plan for taxes, which can be significant when selling or transferring business ownership.
A lawyer can also be an important partner when setting up your business for what's next. They can help you create a legal structure that protects your assets and minimizes liabilities. They can also help you create contracts and agreements that ensure smooth operations and fair dealings with partners, employees, and customers.
Finally, a CPA can help you navigate the financial aspects of your business. They can help you create a budget, manage cash flow, and plan for taxes. They can also provide valuable insights into the financial health of your business, which can be critical when making decisions about its future.
Setting up your franchising business for what's next requires careful planning and consideration. Identifying your goals and vision and weighing out the options before making any major decisions is important. Relying on a team of advisors, such as a succession planner, lawyer, and CPA, is essential. The advisor team can provide valuable insights and expertise that can help you make informed decisions and set your business up for success in the future.
For more on this topic, watch the short video featuring Aaron Chaitovsky with Citrin Cooperman and our very own Jeff Bannon share insights on a common question we receive from multi-unit franchisees: How Do You Navigate Business Transitions When Next-Gen Is Not Interested In The Family Business.
Kendall Rawls knows and understands the challenges that impact the success of a family-owned business. Her unique perspective comes not only from their educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group - Business Succession Planners. For more information, visit seekingsuccession.com or email email@example.com.
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