You’ve been passionate about food all your life. So you plan to transform this passion into a professional career and decide to build your own restaurant business.
You learn that 8 out of 10 new businesses usually fail within the first year of opening. Then, as you browse through the list of licensing papers and permits you need to acquire, on top of the cost of building your actual restaurant, you almost convinced yourself to give up.
Still, you pursued because this is your calling and you would do anything no matter what it takes.You then begrudgingly accept the new challenges that you have purposely brought into your life. And as you take a deep breath and exhale an air of determination, you brace yourself to face head-on the challenges waiting for you in the harsh world of the food industry!
Turning Over Your Restaurant Business
Now finally, after many years, decades evenof ups and downsin the food industry, you look into the near future trying to find something in store for your restaurant business. You are contented with what you have been through and so have decided to exit the food industry.
Upon reflecting, you look back at all those years and then realise that this is the same business you’ve paid for with blood and sweat, time and money to build from the ground up. Heck, why would you leave it to rot by itself?
Well, here’s the good news. There are professionals who specialise in helping you create an effective succession planning when you decide to exit your restaurant business. Experts in this field like Craig West, who is 1 of only 11 people in all of Australia who had been accredited as a Certified Exit Planning Advisor, can effectively help turn over your business to a new owner and even position your restaurant business into a more strategic position. With excellent business succession strategies, you can rest assured that the legacy you’ve poured into your restaurant business will never go to waste.
Reasons to Implement a Succession Plan
Formulating and implementing a fool-proof succession plan for your business will provide you, the owner, and your partners with a multitude of benefits. With Craig West’s more than 20 years’ of experience in the field of succession planning, you will not only get the value you deserve but you can even reach greater heights for your business more than you can imagine.
Here are just 3 of the many benefits gained from an efficient implementation of important business succession strategies:
- Settlement of the estate
A well-thought out succession plan can greatly help in making a timely settlement of the estate in the event of the estate owner’s death. In this case, the restaurant will be properly valued and settled in the most appropriate way possible.2. Ensuring that an agreeable price is reached
With a good succession plan, an agreeable price can be met for each of the partner’s share of the business. This also helps eliminate the need for the restaurant’s valuation upon the owner’s death because the price value has already been agreed with beforehand.
3. Making the policy benefits readily available
Since the value of the restaurant had already been determined, policy benefits can then be immediately available to be used as payment for the owner’s share. This eliminates liquidity and time constraints. Consequently, this helps prevents a possible external takeover because of cash flow problems or the need to sell the restaurant business and corresponding assets in order to cover the cost of the deceased owner’s interest.
Formulating the Perfect Succession Plan for Your Restaurant
Remember that you need to come up with a succession plan that is realistic and attainable. It is important that you discuss this with a professional expert and consult with people like Craig West.
While there may be no strict rules on what you must include in the succession plan, it is crucial to consider the following details:
- The business successor. This could be your business partner or family member or another person. If you decide to leave the business to a family member, it is important to involve a business advisor or a lawyer when discussing this with your family members. This helps eliminate possible legal obligations and ease the effect of your relationship with the family members; thereby avoiding possible disputes pertaining to inheritance or business ownership.
- The type of succession:Should it be full or partial succession?
- The time of succession: When does it begin and when does it end?
- Important factors that must remain or be changed, such as key personnel and skills
- The finances and other considerations like retirement income, tax implications, and sale price
- Risk management strategies
- Buy-Sell Agreement. This is a legally binding agreement between or among co-partners or co-owners that will emphasise what needs to happen once the owner chooses to leave or dies.
Your Other Options
As the restaurant business owner, you have many other options on what to do as an exit strategy. You can decide to close the business. Selling is another possibility. If you can’t find what you’re looking for in this article, then put your mind at ease and head directly to Craig West. His agency has dealt with hundreds of cases of varying kinds with optimum success for decades, so you’re sure he has already outlined the perfect plan tailored-fit just for you.