Business owners invest significant amounts of time and financial resources to make their enterprises successful. Because of the quick pace of day-to-day operations, planning for succession of ownership is relegated to a low-priority task. But there comes a point in the lifecycle of any business when the owner is no longer able to manage the firm.
Because the timing of death or disability is difficult to predict, it’s prudent to have a succession plan in place now to safeguard your family’s financial wellbeing, and to provide your business with leadership during a transition.
Many owners look to keep the company in the family with children, while some prefer a third-party purchase or buy-out from their management team. Whichever you eventually decide is right for your business, there are steps you can take now that will ease the transition.
Planning for succession can be an unpleasant task, although the outcome can be even more unpleasant if you fail to plan. You’ll have a lot more options if you start to plan when things are going well.