Transition Planning Check List: To begin an interrelated business and personal planning process!
QUESTIONS to ASK and ANSWER YES NO WILL DO BY:
- Do You Have Written Goals for your:
- Business? .............................................................................................................. ____ ____ __________
- Personal life? .......................................................................................................... ____ ____ __________
- Family? .................................................................................................................... ____ ____ __________
- Have you prepared a recent will? ............................................................................ ____ ____ __________
- Do you have key personal insurances in place? …….............................................. ____ ____ __________
- Do you have an updated buy-sell agreement? …….............................................… ____ ____ __________
- Do you have a Power-of-Attorney? ………….................................................…...… ____ ____ __________
- Do you have a current financial plan? ………................................................………____ ____ __________
- Do you have a current estate plan? …………..................................................……..____ ____ __________
- Do you have contingency plans for the "Dismal D's"?
- Disability ………………………………............................................................……….____ ____ __________
- Divorce …………………………………...........................................................……… ____ ____ __________
- Death ……………………………………..........................................................……… ____ ____ __________
- (Business) Distress …………………………......................................................……. ____ ____ __________
- Have you done an internal audit? ………………...................................................… ____ ____ __________
- Have you developed a SWOT analysis? ……………………..................................... ____ ____ __________
- Have you reviewed your organization chart? ………................................................ ____ ____ __________
- Have you developed or had a business valuation prepared.............................…. ____ ____ __________
(This is the equivalent of a diagnostic test done before an operation).
- Is the business valuation up to date…< 2 years? …................................................. ____ ____ __________
- Have you decided on how to transfer ownership? .................................................... ____ ____ __________
- Internally: Family, Partner, Employees
- Externally: an Outside party (Individuals, Competitors, Verticals, Private Equity Groups)
- Are you aware of the options, risks/advantages? …...............................................… ____ ____ __________
- Have you established a planned transition date? ….................................................. ____ ____ __________
- Have you planned for ‘Uncle Sam'? ……….....................................................……… ____ ____ __________
(Our unwanted partner…to eliminate, reduce or postpone taxes)
- Have you calculated the cash flow required post ‘ownership transition'? ……….…... ____ ____ __________
- Have you determined the source of cash flow post ‘ownership transition'? …….…... ____ ____ __________
- Have you discussed these issues and plans with your:
- Spouse ……………………………………..............................................................…… ____ ____ __________
- Family …………………………………..............................................................………. ____ ____ __________
- Partner ……………………………………..............................................................…… ____ ____ __________
Now really is the Right Time to assemble your own thoughtful group of ACTIONABLE FACTS ... so you can develop a set of effective, integrated plans that will achieve optimal results for you, for your business, and for your family!