She’s daddy’s little girl. And she always will be, even after she becomes a shrewd construction business strategist. After years of mentoring her, it’s time to ensure your legacy will continue to thrive.
Construction Business Succession Planning
Most of us don’t think about retirement while we’re young, but we should. And we know we should put legalities in place, not only for retirement but also for sudden illness or death. If you’ve been putting it off and you woke up this morning on the downhill side of 60, it’s time to take action, something you know a lot about because after all… You’re in the construction business.
Strategic corporate finance experts can guide you as you design a succession plan to protect your family and construction business. Here are 4 steps:
- Begin the succession-planning conversation – Oaklyn Consulting CEO Frank Williamson says many companies don’t survive the transition from first- to second-generation ownership, perhaps due in part to poor planning and unrealistic expectations. Selling the business upon your retirement or death is a viable option that shouldn’t be automatically rejected.
- Identify discord/seek resolution – Families are messy and emotional. Set the ground rules for family discord mediation and establish guidelines for professional behavior during work hours. Family-based emotional baggage needs to be checked at the door, every working day.
- Gift or sale? – Many factors, including your retirement income are to be considered. Once the transfer terms are settled, you will create a business ownership agreement that refines the process.
- Groom your successor(s) – It’s a process; handing your share of responsibilities over to family member(s). It’s also a great time to analyze your income streams and consider ways to increase profits.
Don’t Wait
Is your company a limited-liability corporation or a non-family member partnership? The time to start is now. “The earlier you begin the process, the more time you have to make well-thought-out decisions,” says Williamson. Professional guidance can minimize stress now and later.
Construction Monitor also offers professional guidance for you and/or your marketing team.
If you choose to DIY (do-it-yourself) marketing strategies, we encourage you to devote dedicated time to business-building. Don’t compromise that time. We won’t compromise our commitment to your business development.
For construction business data analytics, contact Construction Monitor.