What are the two key questions every business owner must answer to successfully transfer the business?
Minneapolis attorney Sally Grossman shares the two key questions every business owner must answer to successfully transfer the business.
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I think there are two key questions every business owner should answer to successfully transfer their business, and before I give you those answers I’m going to tell you why I think these are key questions. I think one of the reasons business owners don’t do the planning that they should is because, as advisors we’ve tended to make it too complicated, and so people are dealing with death, taxes, how do my kids manage things, who would be a good leader, how do I replace myself? They get overwhelmed, and then they come to see an advisor and the advisor starts talking about GRATS and IDGTs and skins, and speaking alphabet soup.
And what happens is, we think we know the answers, so we rush right to techniques, and we’re talking about the how instead of talking about the why. So, my two questions are a way to get the entrepreneur, or the founder to focus on what’s the why? And the two questions, drum roll here, when do you want to transfer the business, and who do you want to transfer it to? And those are pretty simple questions, but they will get you to think about what you’re doing, why you’re doing it before you worry about how you’re going to do it.