California business owners like you have options when it comes to selecting business successors. You might already have someone in mind, or you may end up waiting for the right person to come along.
In either case, it is prudent to know what your options are. This way, you can ensure that you hand your business off in the best possible manner.
Five ways to transfer ownership
Fit Small Business looks at different ways to transfer ownership of your business. They state there are five common types of business ownership transference. They include heirs, key employees, co-owners, outside parties and companies.
If you wish for heir transference, that means you will pass the business down through your family. The rest of the options involve selling the business. You can sell to a key employee, a co-owner, an outside party, or sell your share back to the company itself.
Weighing the pros and cons
Each option has its own negatives and positives. Heir transference allows you to pass the business on to someone you know well. But if no family members have interest in running the business, you will find yourself in a bind. Selling to an outside party ensures that someone will take over, but you do not know anything about them. They might not run your company as you wish.
Selling to a key employee or co-owner ensures that you get someone in control who understands how your business works. You have worked with them firsthand and know their points of view and how they handle situations. But key employees or co-owners might not always have the funds needed to buy the business.
It would benefit you to discuss your potential options with a legal team. They can help you figure out what would work best.