SUCCESSION OF BUSINESS
By 2015 millions of baby boomers will be retired, causing a significant gap in the workforce. This will be a critical issue for small businesses that are looking to find successors. Only about 60 percent of businesses have a succession plan in place. For very small businesses this percentage is likely to be a lot lower.² In the next sections we will focus on important issues that can help the entrepreneur plan for the succession of the business to either a family member, an employee, or an external party. Table 15.1 provides a summary of important tips that should be considered in any succession plan.
If there is no one in the family interested in the business, it is important for the entrepreneur to either sell the business or train someone within the organization to take over. Each of these transfer possibilities is discussed in the following sections