How to Turn Your Business into an Economic Engine through Succession Planning

So, you’ve built and ran a successful family business, but now it’s time pass it along to the kids or another family member to let them take a crack at it. The question is: how did you get here, and what do you do now? As daunting as planning the eventual sale or transfer of your business may seem, especially when considering that 8 out of 10 businesses never sell, succession planning is something that you can start on day one. With the right planning, you can ensure you’ve got all your ducks in a row to maximize the liquidity in your business and the profit you’ll earn when the day comes to sell.In this episode of Financial Cents, special guest Sharon Lechter, CEO of Pay Your Family First and author of Exit Rich, joins Brent Cannon, executive vice president and director of community banking, to discuss how succession planning can help you turn your business into an economic engine that will last for generations.The truth is, as Sharon and Brent point out, going through the process of succession planning isn’t just about making sure your business will thrive after it leaves your hands, it’s about ensuring your business is built on a strong financial foundation that can generate wealth for generations. “To me, the whole advantage of taking the risk and building your business through your blood, sweat and tears is that you potentially have a payday,” explains Brent. “Otherwise, you might as well have stayed in your corporate job.”“That’s true,” agrees Sharon. “And so many people own a job, not a business. They think they're business owners, but they really own a job because they haven't done what they need to to create that economic engine.”Financial Cents is hosted by Brent Cannon, executive vice president and director of community banking, and features insightful interviews and discussions with bankers at National Bank of Arizona. Based on decades of banking experience, Financial Cents provides the insights you can only get from a friend in the business.Subscribe from your favorite podcast platform by visiting nbaz.com/financial-cents.Buy Sharon's new book at exitrichbook.comCheck out more content Financial Cents content by visiting: https://www.nbarizona.com/financial-cents/