The Wading River - Shoreham Chamber of Commerce fosters a working relationship between business owners, local officials, civic leaders, community groups and residents to advance the economic, social, and cultural well-being of our communities.
Become Worker Owned
There are three reasons why you might want to sell your small business to your employees.
1. Get fair market value
2. Preserve what you have built
3. Share ownership responsibility
Very few small business owners have an exit plan. The result is that a great deal of value and jobs are lost when they end up closing instead of selling when it becomes time to retire.
Because of the possibility of job loss, the workers become the most motivated buyers. They have a lot to lose if it fails. That makes them very safe buyers. They already know the business and know how it works.
Closing instead of selling may also impact the owner's ability to retire the way you want. An exit plan includes a plan to leave with enough money to retire your way and provide for yourself and the ones who depend on you.
Running a business is hard. Selling to your workers is a way to share that responsibility with others. That might be attractive if your passion really is to make things or provide a service more than running a business. Selling to your employees lets you do that without giving up the freedom of business ownership.
Most people will agree that having a plan increases the likelihood of success. An exit plan increases the likelihood that you can exit the way you want. Like everything else, planning takes time and commitment. I recommend getting started right after you start your business. Today will also be good.
Selling to your workers is a non-adversarial, collaborative process. Call me today. Let us make a plan.