Help! I Have No Succession Plan

So you've grown your business over a sustained amount of time, perhaps your whole adult life, and now you find yourself ready to move on without a plan for the business.

First of all congratulations for how far you've come! Building a business is not easy. There are several ways to go once you've come to terms with being done. If you have groomed someone (or a few people) to manage the business you can certainly continue to own the business and look at an equity ownership play for this manager. The equity will keep him loyal and motivated and you can train him on any remaining areas of the business before checking out day-to-day. It is important to ensure your financials are in solid order and that you have a CPA and a dashboard to have your eyes on your business now that you won't be involved. Depending on your size, you may want to create an Advisory Board or Board of Directors and sit on the Board as Chairman so that a team of people are overseeing the new management team from afar. If you don't have someone identified or groomed or aren't interested in that option, you can sell your business either partially or completely. Most likely if you feel done you will want a 100% sale. The contracting space has many different buyers today so you have options. Some insist you stay on and will offer you some amount in cash upfront, and then equity to be realized in another sale usually five years down the road. Some may offer you a complete buyout or a buyout with a 1-2 year consulting arrangement or profit sharing in the larger company. Some may offer you a mix of cash upfront and seller financing paid out of the company's profits over time. It's best to work with someone with experience laying out all of your options with you so you can determine what is best. The good news is you definitely have options and succession with a smile is right around the corner if you want it.