Whether you are starting a business, buying or selling a business, entering into a partnership or planning your exit strategy, you need a clear vision for what you want to accomplish. A vision in this sense is the end sum of your goals and overall purpose. Once you have defined your vision, the planning can begin.
The vision you have for your business will help you set the course and establish direction for success. For example, if you desire to buy a business but cannot visualize what success would look like, then it would be difficult to place a value on the business, develop a business plan and determine what resources you will need to invest. This could lead to paying too much, buying the wrong business or entering the wrong market. This may also cause frustration down the road in terms of setting specific goals and determining where to focus resources. In addition, an unclear vision could make choosing the proper legal structure of the business more challenging.
Anyone buying business, entering into a partnership or forming a new entity should have effective legal documents establishing the terms of the deal and the rights and responsibilities of the owners. Further, every business owner should have an exit strategy, succession plan and an agreement among his or her partners establishing the rules for leaving and buying into the business. This holds true regardless of whether the owner or owners have a well-defined vision. However, having a clear idea of the vision for the business will make the relevant documents and agreements exponentially more effective and valuable.
The attorneys at Vann & Sheridan, LLP would be pleased to speak with your regarding any of your business planning needs.