Transition A Braveheart Business


If you want your heirs to benefit from the blood, sweat, and tears you've put into your business, the odds are against you: Only three percent of family businesses survive more than two generations. Successful transition depends upon the steps you take now. It is important to consider not only what an established legacy means for your financial future, but what it means for your children, grandchildren, and heirs.

Long Business Advisors works at the nexus of business and family, helping you navigate the decisions necessary for a successful transition through a step-by-step process we call,

"The BraveHeart Planning Process."


Step 1: Taking a Stand - The Decision

Ultimately, the question is not will you exit your business, but when you exit, will you do it well? The first step in the process is to decide upon your transition goals. The sooner a business owner accepts the inevitable transition, the more successful the outcome can be. Taking a stand is about answering these 3 key questions: 

  • When will I transition from my business?
  • To whom will I transition it?
  • How much will I need to secure my financial independence?

Step 2: Assessing Your Strengths - The Resources

You need to establish the starting line in order for your goals to become a reality. To do this, you need to clearly understand the value of your 3 main assets. These include:

  • The value of your business
  • Your personal net worth
  • Your cash flow

To ignore this crucial information would be like a pilot of a 747 taking off without going through a pre-flight checklist!
Whether you decide to transition your business to an heir, your employees, or a 3rd party,  evaluating the resources you have at your disposal to meet your exit objectives is an integral part of the BraveHeart Planning Process.

Step 3: Choosing Your Taskforce - The Team

To reach your goals, you must assemble a superstar team of professionals that have your best interests at heart. It is crucial to surround yourself with expert, experienced advisors because the quality of your team can make or break your BraveHeart Plan.
The majority of an entrepreneur's net worth is typically in their business. The stakes are high when selecting a team: you need more than competence—you need industry "all-stars."

BraveHeart Business Advisors stand by your side to help you to assemble the members of your BraveHeart team. Depending on your goals and circumstances, below is a list of the professionals you may require:

  • BraveHeart Business Advisor
  • Certified Public Accountant
  • Business Planning Attorney
  • Business Valuation Expert
  • Estate Planning Attorney
  • Life Insurance Advisor
  • M&A Consultant
  • Investment Advisor
  • Property/Casualty Insurance Advisor
  • Management Consultant

Step 4: Focus Your Efforts - Value Catalysts

If you want to own the most profitable business possible, you need to turn your focus from working IN the business to working ON it. By focusing on unique value catalysts, you can increase the value of your business exponentially.

Value Catalysts turn mildly profitable businesses into moneymaking machines. They are the key difference between a technician that builds an operation and an owner that understands how to multiply revenue streams. 


Step 5: Build Your Fortress - Business Durability

Business durability has two key components. The first is making sure the business can survive without you - planned or unplanned. The second component separates your loved ones’ financial security from the profitability of the business. 

Most successful business owners have 70%-90% of their net worth tied up in their businesses. If that much value were to collapse, it could devastate your family’s financial well-being. Business durability is about building a BraveHeart business that can withstand internal and external forces that try to destroy it. 

Step 6: Build Your Family - The Legacy Builder

It is extremely difficult to successfully transfer wealth to the next generation.  Long Business Advisors realizes it is not enough to merely protect yourself from losing wealth; you also have to protect your family. We guide you through the complicated process of transferring your money to your loved ones in a manner that builds your legacy instead of destroying it.

We will help you navigate:

  • Legal paperwork and Risk Management
  • Your family’s expectations and reactions
  • Developing your family for transition 

Many business owners live for the day they can finally sell their business, or pass it off to a worthy heir. Unfortunately, many owners don’t realize that their personal financial lives, as well as their families, must also be ready for the next step to make it successful long-term.

Step 7: Create Your New Life - Live Your Legacy

What do you do after you have found success? Where do you go from there? Rather than see an owner’s golden years as a time of decline, Long Business Advisors looks at the second half of a person’s life as a time to start something new, to begin again. The first half is all about success; the second is about finding significance.

Unfortunately, many owners don't realize that what happens after the transition is far more important to their financial and emotional well-being than the transition itself. It is vitally important for owners to envision their post-business life long before they sell or transition their business.
Some questions to consider before you transition:

  • How much money or income do I need to maintain my lifestyle after a transition?
  • Should we consider gifting of any assets to trusts for the children or grandchildren?
  • What will I do with my time after the sale or transition?

Long Business Advisors encourages you to think about these questions. Consider both the goals you have for your business and the hopes you have for your legacy. Contact us for an appointment so we can discuss how we can help you live your legacy and transition a BraveHeart business.