SMALL BUSINESS MANAGEMENT

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SMALL BUSINESS MANAGEMENT

• Chapter 15
• Managing the Transfer of the Business

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Managing the Transfer of the Business

• Long Range Planning
• Alternative _______ for the Business
• transferring ownership to heirs
• selling the business to outsiders
• closing down the business or declaring bankruptcy

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Transferring Ownership to Heirs

• Potential Problems in a Family Business
• high _______ level
• blurring of roles
• incompetence
• non-family _______ attitudes
• objectives of family owners

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Planning for Succession

• Keeping Communication Lines Open
• Tax and Legal Implications of Transferring the
  Business to Family Members
• Methods of _______ the Business to Family Members
• through a will,purchase and sale, gifting
  program, life _______, joint ownership

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Principles of Success for Family Businesses

• Recognize the Importance of Objectivity
• Create Clear _______ _______
• Ensure Competence
• Provide _______ for Non-Family Employees
• Clarify Objectives of Family Owners

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Selling the Business to Outsiders

• Going Public
• Private Placement

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Closing Down or Going Bankrupt

• Closing Down
• Business _______

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Concept Checks

• 1. What are some methods of transferring ones
  business to ones children?
• 2. What is the importance of capital gains in
  this transfer?
• 3. What are the unique problems of a family owned
  business ?
• 4. Why is the emotional level higher in a family
  business ?

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Concept Checks

• 5. What can be done with an incompetent family
  member employee ?
• 6. What can be done to prevent nonfamily
  employees from leaving the business ?
• 7. Why is it important to set long-term goals in
  a family business ?
• 8. How can family succession be made easier ?

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Concept Checks

• 9. Why is open communication so important in a
  family business ?
• 10. What budget change has effected the selling
  of a small business ?
• 11. How do you know if your company should go
  public ?
• 12. What is the priority order for creditors in a
  bankruptcy case ?