New Initiative Supports Rural Business Owners in Succession Planning and Employee Ownership

New Initiative Aims to Secure Future of Rural Businesses in Minnesota

BRAINERD, MN — In a significant move to bolster the economic stability of rural communities, the North Central Small Business Development Center (SBDC) at Central Lakes College has teamed up with the Minnesota Center for Employee Ownership to launch a groundbreaking initiative. This program is designed to assist rural business owners in planning for their future, preserving local jobs, and ensuring their businesses remain integral parts of their communities.

As many baby boomer business owners approach retirement, a pressing concern looms: the lack of clear succession plans. Without a viable exit strategy, numerous businesses risk closure or acquisition by outside entities, which could have detrimental effects on local economies. The new partnership aims to equip these entrepreneurs with the necessary tools to transition their businesses confidently and responsibly.

“Your business is your legacy,” stated Katie Heppner, regional director of the North Central SBDC. “We want to ensure that rural entrepreneurs aren’t leaving that legacy — or their community’s economic future — up to chance. This partnership provides the knowledge and support needed to understand their options, plan ahead, and make informed decisions for themselves, their employees, and their towns.”

The initiative offers three core services at no cost to business owners:

1. Business Valuation Support: Essential for any transition, this service helps owners assess the fair market value of their business, enabling them to plan exit timelines and negotiate with potential buyers.

2. Succession and Legacy Planning: Business owners will receive guidance in developing a transition strategy that aligns with their personal and professional goals, whether that means retirement or ensuring continuity for employees and customers.

3. Employee Ownership Exploration: The Minnesota Center for Employee Ownership provides education on various employee ownership models, including employee stock ownership plans and worker cooperatives. Consultants will work directly with interested owners to evaluate how these models align with their values and objectives.

All services are confidential and provided at no cost. Business owners in the region can easily request assistance by visiting the North Central SBDC’s website at northcentralsbdc.com and clicking “Request Services Online.”

“This collaboration fills a critical gap in rural economic development,” remarked Kirsten Kennedy, executive director of the Minnesota Center for Employee Ownership. “We’re not only helping business owners take control of their succession plans, but we’re also giving communities a powerful tool to retain jobs, stabilize local economies, and keep businesses locally owned for generations to come.”

For more information on employee ownership and additional resources, visit mnceo.org or contact Kennedy directly at kkennedy@mnceo.org.

As rural Minnesota faces the challenges of an aging workforce, this initiative stands as a beacon of hope, ensuring that local businesses can thrive and continue to serve their communities for years to come.