By ROD ZOOK
Hutch Post
HUTCHINSON, Kan. — One of the most difficult things for a small business is when the owner is ready to turn the keys over to someone else. The city has seen several mom and pop stores close over the years. Jackson Swearer with StartUp Hutch says succession of businesses in Hutchinson has been a challenge.
“There have been several examples of businesses where maybe the generation that started it or maybe they got it from their parents, their kids are not wanting to take over that business, “ Swearer said. “We need to find somebody new to come in and do that.”
Swearer, whose company helps finance and give direction to new business owners, says it can be difficult to find the right fit for taking over a small business.
“I think it can be a challenge for us because finding the right person to do that whether its an employee that has what it takes to step up and be the owner, or somebody else with relevant experience or the motivation to buy the business, it can be challenging to find the right person,” Swearer said. “But the flip side of that is that businesses themselves aren’t always really set up to be easy to be sold.”
That problem can occur if a business owner doesn’t plan ahead for either selling it or passing it down to another generation. Swearer says that catches many small business owners off guard.
“People often get into a situation where they're running a business where they just kind of run it as business as usual, and then they get a year out from when they want to sell it and then that’s when they start thinking about it, '' Swearer said. “ Even a year out is a little too late...you really need to start thinking about that kind of thing three or four years before you’re going to sell it to make sure you get the books for the business, taxes and all of that set up in a way that makes it easier to sell.”
It is never easy to let your hard life's work go to someone else when your business is sold or passed down. Swearer says finding the right fit in succession of your business is always important.
“I think people have a justified sense of ownership and pride over the business that they’ve built,” Swearer said. “They want to make sure that if they are going to sell it to somebody and it's going to stay at that business they want it to be successful and to keep the good name of the business that they’ve built.”
To help kickstart Reno County succession planning conversations, StartUp Hutch is hosting a workshop on August 12th from 2:00 to 5:00 p.m. This free event is for business owners who want to learn more about what to expect and how to start their own plan, and features experienced panelists such as Erica Blair, Richard Feltenberg, Brett Henry, Dave Inskeep Jr, Travis Mullens, Eric Steinle, and Dell Swearer.
For more information or to register for the succession planning event, visit www.startuphutch.com or contact Jackson Swearer at 620-665-3319.
CLICK HERE to download the HutchPost mobile app.
CLICK HERE to sign up for the daily HutchPost email news update.