Small businesses are the backbone of the economy. This holds true for Greater Des Moines (DSM).
There are more than 265,000 small businesses in Iowa making up 99.3 percent of all businesses. Together, they employ 641,000 people, according to the Small Business Administration (SBA). Added to that, 78 percent of all new jobs are created by family businesses. Small businesses add jobs at the quickest rate.
With small business being so vital to the local community and economy, it begs the question: What would happen to your business if you weren’t able to make it to work on Monday? Having a succession plan in place is a vital part of ensuring your business remains in business. Does your business pass the “hit-by-a-bus” test?
According to the Small Business Development Center (SBDC), 40.3 percent of family-owned businesses are looking to retire in the immediate future. However, 47 percent of those same businesses do not have a successor lined up.
Taking on an established business is a great opportunity for people to build and to be their own boss. On the other hand, identifying a successor can be stressful within a family.
There is a disconnect between those wanting to sell their business and those wanting to take on an established business. The Greater Des Moines Partnership is using this as an opportunity to connect both sides. We’ve put together a Succession Planning Advisory Network (SPAN) made up of individuals with experience in succession planning; either for their own businesses or on behalf of others. They are available to provide assistance and answer questions for businesses looking at the next chapter of ownership.
Find additional information here and click on the Succession Planning tab or to read the article click here.