Succession Planning - The Most Important Business Plan a Small Business Owner Can Make

As a small business owner, you put your heart and soul into building your company.  But what happens when it’s time to move on?  Whether you are retiring, selling, or passing the business on to your children, you need a plan.  That’s where succession and estate planning meet.

Succession and estate planning aren’t just for wealthy individuals.  They are for business owners who want to ensure the distribution of their assets according to their wishes.  If you are a small business owner, your business will likely be one of your most valuable assets.  Without a plan, your business might end up in probate court for months or years, costing your family time, money, and stress.

That is why it’s crucial to start thinking about your exit strategy now.

The following steps are a good start to your succession plan:

Know Your Options: You must know your options before creating an exit strategy. Will you sell the business outright?  Will you pass it on to your children?  Will you continue to play a role in the company even after you retire?  Understanding your options will help you decide what’s best for you and your family.

Plan Early:  The earlier you start planning, the better.  This gives you time to explore your options and make informed decisions.  It also gives you time to build up the value of your business, which can increase the amount you receive if you decide to sell.

Get Professional Help:  Succession and estate planning can be complicated, especially when a small business is involved.  Working with an experienced attorney who can help you navigate the process is essential.  They can help you understand the legal implications of different options and create a plan that meets your specific needs.

Communicate With Your Family:  Succession and estate planning is not just about you – it’s also about your family.  Make sure you communicate your plans with them and involve them in the decision-making process.  Keeping everyone engaged can encourage cooperation and prevent potential conflicts.

Review and Update Your Plan:  Succession and estate planning is not a one-time event.  You must review and update your plan regularly to meet your needs.  This is especially important if your business or personal situations change.

Please do not wait until it’s too late to start thinking about your exit strategy!  With the right plan, you can ensure your business thrives long after you are gone.  So take the first step today and start planning for your future.

*Disclaimer: this article is for informational purposes only. It is not providing legal advice. It does not create an attorney-client relationship.