Driving value in your business with succession planning from LRS Consulting Inc.
You’ve heard of the Millennials. You’ve heard of the Baby Boomers. And probably even Generation X. But have you heard of “Generation Exit?
If you are currently a small business owner, with typically less than 500 employees, then you may be part of this lesser-known, but incredibly important Generation Exit.
Who is Generation Exit? And why are they so important?
Generation Exit is a whole generation of business owners wanting to exit the small business world for a variety of reasons. Many have been successful and are ready to sell their current business to move on to a new venture. And some are ready to retire.
And while many have been successful, few have planned for the next successful step they need to take in their business – succession planning.
Large firms often have formal teams that devote hours and meetings and financial resources to establishing detailed succession plans, many smaller firms – typically less than 500 employees or $50 million in annual sales – don’t often know where to start and what resources they need to get the process started.
In 2015, Entrepreneur published an article by Stephen Sheinbaum discussing the importance of small business succession plans. In the article he shared this scary fact, “A survey earlier this year  by CNBC and the Financial Planning Association found that while 78 percent of small-business owners intend to sell their businesses to fund their retirements, fewer than 30 percent have a written succession plan.” According to Sheinbaum, “That’s not a recipe for success.”
At LRS Consulting Inc. we couldn’t agree more. That’s why we offer through a consulting services a highly-qualified team that can assist in preparing your rural small business for the future.
We know that succession planning is important to not only your business but also the community you serve.
With many small business owners in rural areas looking ahead to retirement, we also know that without proper planning this exodus could be a problem for small rural communities. We are well aware of the social and political implications that this age advancement will create.
So, whether you are a community leader or business owner, think about your exit or the generation exiting businesses in your communities and contact us.