They have their own opinions expressed by business partners.
It is well -known that only 20 % of the small businesses that go to the market, and the silver tsunami, who want to retire this huge wave of Baby Boomer’s business owners, worsen the problem. Most of them will not sell businesses, and they will be closed.
Who hurts if the company is closed?
Business owners cannot access most of them.
Employees are out of job.
The community loses a big asset.
Does the business need to be closed? Consider this: The company has consumers, taxes, trained staff, system, distribution channels and a infrastructure and ecosystem that takes many years to develop. It is a shame to throw all this!
Traditional external buyers are strategic buyers, financial buyers and lifestyle buyers. If there are not enough buyers from the outside, what do you think about looking inside?
Related: Why the growing number of retired businessmen is selling business to their employees
The benefits of ownership of employees
Business owner:
In addition to accessing most of their pure value, business owners control the sales process. They do not need to meet and welcome many potential buyers.
When dealing with outside buyers, they read and analyze the intentions of interested intentions, choose one, and then strive with a strictly careful process under the leadership of potential buyer’s financial advisers. The whole sales process is very easy to sell to key employees.
Key employees:
Key employees experience an important upgrade in their career.
Other employees:
Other employees maintain their jobs, and their “second family” remains intact.
Community:
The money that flows through the company is left in the society. This money helps to help education, fire and police departments, road restoration, etc., as well as suppliers, service workers and trusted advisers have maintained a client.
Additional Benefits:
Chemistry is established between the buyer and the seller. Many times due to lack of chemistry, a contract goes to the south between the seller and the stranger.
The company’s culture is the same. If a stranger buys, the culture will turn into some fashion. If these cultural changes are very severe, many important employees can leave.
Related: Transfer method in ownership of employees
Training your main employees
Key employees know the company inside and outside. They respect and respect users, products and systems, and other employees.
However, there are functions that perform a good CEO, and key employees are not usually involved, so they will need training. What are these works?
Strategic Planning:
This includes training for modern growth strategies, planning in response to competitiveness and navigating market and industry changes.
Cash Flu:
It is important that the owner understands and applies cash flow management and forecasts.
HR Management:
The owner should have a feeling to assess the ability that needs to perform specific work in the business. They also need to know what to do when an employee is affecting the company and what to do about it.
Mental training:
Key employees will need to adjust their mentality as an employee as the owner. When they talk to the company’s trusted advisers, they will need to put their owner’s hats.
Types of ownership of employees
Employee stock ownership plan (ESOP): This is the most famous form of employees far away.
Employee ownership trust (EOTS): eots Companies have to support the ownership of employees and they are becoming more common.
Worker Co -operative: A business owned and controlled by its workers.
All three types of employees can work well with large companies. They are complex and very expensive. They will cost tens of thousands of dollars and thousands of people on a monthly basis.
There are companies that specialize in the establishment and management of different types of employees. Most need a company as a client to understand a company of 1 million or more before understanding a company.
But what will happen to the smaller companies who would like to consider employees in their succession project?
Selling the company to key employees will not be a government -organized program. The deal will include only business owners and key employees. The owner will select key employees and their positions within the forward company.
Related: Selling your business to your employees
Choosing key employees and moving forward
The business owner should be very selective and careful to choose his employees to own the company. They should have a good credit rating and be properly encouraged to know what is needed to become a business owner.
As a business owner, you should refer to each key employee selected as a potential owner and pass through, mention this possibility. When you have talked to each key employee individually, analyze their reaction to them collectively preparations to meet them. If they are interested, you will follow this process.
The first thing you need to know about is what your business costs right now. You need to diagnose the market. It will tell you how your company compares similar companies in the same industry.
Then, prepare a plan to make the company efficient, efficient and scaling. When you are CEO, choose an important employee to become president, and train the president in all the actions mentioned above. Other important employees will be assigned to administrative positions.
When the company has increased and cash flow is sufficient to support increasing loans, plan to sell the company to key employees.
It is well -known that only 20 % of the small businesses that go to the market, and the silver tsunami, who want to retire this huge wave of Baby Boomer’s business owners, worsen the problem. Most of them will not sell businesses, and they will be closed.
Who hurts if the company is closed?
Business owners cannot access most of them.
Employees are out of job.
The community loses a big asset.
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