Steps to Transition
Step One: Explore Compatibility
Initial consultation, conversations, and research to understand how worker-ownership may fit the goals of the owners and employees, as well as to determine the potential future success of the business.
Step Two: Assess Financial Feasibility
Test the viability of a transition by assessing the financials and conducting a business valuation. Develop potential models to sketch out a timeline for the transition. When ready, gauge employee interest in converting to worker-ownership.
Step Three: Craft the Plan
Create a business plan, sales agreement, bylaws, and governance structure. Design the selling owner's role and begin training employees to ensure a smooth transition in management.
Step Four: Finalize the Deal
Close on financing and finalize the new bylaws and governance. Finalize plans for ongoing training and support.
Step Five: Create the Culture
Provide training and support for worker-ownership culture and open book management.