Preparing Your Property Damage Restoration Business for SuccessionApr 28, 2023
I’m not in the business of selling restoration businesses, but I do help my clients prepare for their exit at some point in the future.
If you don’t know who I am, I’m Scott Miller, the owner of thegrowthleague.com. I’m making these videos to help restoration business owners get more profitable, reduce the chaos and build something they can sell for a lot of money when they are ready to move on.
By the way, please subscribe to my Youtube channel and hit the like button if you get some value out of this today. Thanks! AND If you want to learn more about how I help clients book a call with me, click the link BELOW this video.
As a property damage restoration business owner, you’ve worked hard and continue to work hard to build a successful company. But have you thought about what will happen to your business when you’re ready to move on? Whether you plan to retire, sell your business, or simply step back from day-to-day operations, it’s important to have a plan in place for business succession. Here are some tips for preparing your property damage restoration business for succession:
- Start early: Succession planning is a process that should begin well in advance of your planned departure from the business. Ideally, you should start thinking about succession planning when you first start your business, but if you haven't already, start now.
- Know your numbers: Be sure your books are set up so that it’s easy to tell the story of your business. Profitability by division, Expenses, personal add-backs, etc.
- Work your way out of the day-to-day operations. Buyers aren’t looking to buy a job filled with lower-level field and administrative tasks.
- Identify potential successors: Consider who would be the ideal candidate(s) to take over the business when you’re ready to step down. You might consider family members, key employees, or even selling to a larger restoration company. It is important to choose someone who is capable of leading the business and who shares your vision and values.
- Develop a plan: Once you’ve identified potential successors, it’s important to develop a plan for transferring ownership and responsibilities. Consider factors such as timing, funding, tax implications, and legal considerations. Consulting with a lawyer, an accountant and a business broker is highly recommended.
- Communicate your plan: Once you have a succession plan in place, make sure to communicate it clearly to your family, employees, and any other stakeholders involved in your business. This will help to ensure a smooth transition and minimize any potential disruptions.
- Document important information: Ensure that important information about the business is documented and easily accessible to the successor(s). This might include information about customers, vendors, employees, and business operations. You should also ensure that all of your business agreements and contracts are up-to-date, and any policies or procedures are in place.
- Mentor and train your successor: Transitioning the business to a new owner takes time and effort. Make sure to mentor and train your successor, so they are well-prepared to take on the responsibilities of running the business.
- Revisit and revise your plan regularly: Business conditions can change rapidly, so it’s important to revisit and revise your succession plan regularly. This will ensure that it remains up-to-date and aligned with your business goals.
Preparing your property damage restoration business for succession can be a complex process, but with proper planning, it can be a smooth transition. By starting early, identifying potential successors, developing a plan, communicating your plan, documenting important information, mentoring your successor, and revisiting your plan regularly, you can ensure the future success of your business.
Get Your Restoration Business
In The Best Shape of Its Life
with the help of a guide dedicated to your success.