Last week I discussed four indicators that a seller may be feeling remorseful about selling their business – this is becoming an ever increasing problem, exacerbated by the fact business owners are reaching retirement age in ever increasing numbers.

During the week I spoke to Peter McKnoulty about this very issue. Peter is the Founder and CEO of Transition Planning Australia, and he’s passionate about this topic. Adopting a broad focus on the practical of business sale and family succession, Peter (and the TPA network of advisors) have extensive experience in advising families on intergenerational transfers of business and wealth.

Basically it all boils down to proper planning.

In the main, business owners like running their business, they are good at what they do, and so it’s hard to imagine what they would do with their life if they do not go to work every day. Their business is often their life which brings a whole range of emotional feelings and decisions from fear of the unknown to a loss of identity – they often see a lack of purpose or clear vision for the days ahead.

The fact is the transitional process of exiting our business is inevitable for all of us – but will we be ready for it ?

Business owners are used to planning, budgeting and making decisions, but do they  apply the same effort to planning their future ?

Owners have relied upon a team of trusted advisors – accountants, lawyers, and financial advisers. When its time to consider the next phase, their advice can be invaluable.

But this is only part of the story. Transition Planning Australia advisors work with your trusted business advisors, while focussing more on YOU.

This transitional process often includes:

This process typically includes the following steps:

1. considering and transforming their concerns around leaving their business

2.  devoting the time and resources to developing a personal transition plan

3. considering a range of options for what to do in various aspects of their life after business – for example activities with families and friends, creative and physical activity, intellectual stimulation, paid and charitable work

4. brainstorming these possibilities with other like-minded people

5. creating a personalised transition plan

Once the business owner has completed their personal transition plan, they will be more readily able to let go of their business. The business transition plan should be undertaken with the business owners team of advisors, and could address the following issues:

1. an analysis of different options for new ownership of the business

2. processes to emotionally separate from the business, while creating their personal goals around leaving the business

3. an understanding about how much they need from the sale of their business, and how much it is worth (and, therefore, whether they need to put in place a process to increase its value)

4. any steps necessary to make the business ready for sale to new owners – e.g. appointment of a manager, organising systems, and ensuring all structures and documents are in order

5. the process of actually selling the business

By preparing a personal transition plan first, to create a life with purpose and identity outside their business, the business owner is more likely to let go of the business and transition successfully. A business owner who prepares a business transition plan is also more likely to make a successful transition out of their business – and, for a higher price.