You know that one day, you’ll need to step away from your business—but figuring out where to start can feel overwhelming. Preparing for a transition isn’t just about having a plan; it’s about ensuring your business is strong enough to thrive without you.
That’s why this second post in our series is all about assessing your readiness for transition—financially, operationally, and personally. Whether you’re years away or just starting to explore options, these early steps can lay the groundwork for a smoother process later on.
Financial Readiness
Before selling or transferring ownership, your business needs to be financially stable and appealing to potential buyers—whether that’s a competitor, employee, or family member. A great first step is getting a professional valuation. A certified valuation analyst will assess your assets, liabilities, and earnings to determine your business’s market value.
Key actions to take during this step:
- Clean up your balance sheet and ensure financial records are accurate.
- Understand the tax implications of different transition models.
- If you’re a Hannah Grimes client, book up to three free sessions with valuation expert Chris Wheeler.
Operational & Leadership Readiness
Can your business run smoothly without you? Buyers want confidence that day-to-day operations won’t collapse when you leave. Strengthening operations and building leadership capacity are key parts of succession planning for small business owners.
Pro tip: The Northeast Transition Initiative suggests taking an extended vacation before selling. This gives your management team a chance to run things without you—highlighting any gaps that need attention.
Tools and Resources to Help You Prepare Assessment
There are plenty of great resources to guide you through this process:
- Business Succession Planning Manual
The Business Succession Planning – An Owner’s Manual is a step-by-step guide with worksheets to help you evaluate your business’s financial health, operational efficiency, and leadership strength. It’s a solid foundation for succession planning for small business owners who want to stay organized and proactive. - Northeast Transition Initiative Resources
The Northeast Transition Initiative offers a collection of videos, tools, and expert advice to help you assess your business’s readiness and plan for a successful transition.
- Professional Advisors
Financial advisors, legal experts, and business consultants can help identify gaps in your plan and offer tailored recommendations. Get started with Hannah Grimes’s coaching roster.
If you’d like to help service providers better meet your business transition needs, please fill out this survey by the Northeast Transition Initiative.