You’ve put a lot of time and effort into helping your business become successful. However, have you given any thought regarding what will happen to your business when it’s time to walk away?
It’s never too early to begin thinking about a business succession plan. Giving yourself plenty of time to explore your options can help ensure that your wishes will be honored. Here are some key considerations you should keep in mind when putting together a business succession plan.
Will you be keeping the business in the family?
You need to consider what the future holds for your family members. Maybe your children or other relatives have no interest in carrying on the legacy of your company. Maybe you can’t trust your loved ones to operate your business in a way that measures up to your standards. These and other considerations should be kept in mind if you’re thinking about keeping things close or are contemplating passing things on to an outside party.
If you decide to sell your business to an outside interest, think about how you’d like the proceeds to be divided among your beneficiaries. If you decide to keep things in the family, you will need to determine whether everyone gets equal shares.
Give some serious thought to your potential successors
Ideally, you’d be able to pass off the keys to your business and retire without a care in the world. However, things rarely go so smoothly. It’s important to think about who will best honor your legacy. If you intend to leave the business to your children, consider their relationship with one another. Will they be able to get along well enough to operate the business effectively? You don’t want to pass your business along only to have it brought down by non-stop in-fighting.
Seek outside points of view
Many business owners become so enamored with the thought of leaving their legacy to their children that they fail to see potential problem areas. An outside party can provide you with a valuable perspective and can point out things that may have never crossed your mind. A skilled legal professional can help you tailor a business succession plan that will best suit your needs.