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Succession Planning is a Must for a Business Owner

For most small business owners their business is like a child – they invest time, money, energy, emotions and passion….but very few of them think what happens to the “child” if the “parent” is not around anymore.

We know that as people and entrepreneurs you think about growth every day but have you thought how to ensure it if you are not around?

Around ⅔ of business owners fail to plan for succession. The funny thing is that the percentage jumps even more to 75% of business owners over 50 years old. It’s like they never plan to retire!

This is a scary statistic considering the health and risk issues of our modern times. For example, the first sign of a heart disease is often a deadly heart attack.

Can you imagine your business in the hands of the wrong person?

Can and will your family manage it as you do?

Will they sell it and do you want them to?

These are all very important questions to ask yourself. You might think that a will, verbal or informal agreement might suffice but lawyers will disagree. It might take months and years before a will is actually put into action. Verbal agreements are difficult to prove even by the most experienced lawyers. Can you imagine putting all your employees and family members through the insecurity of these legal proceedings?

We know that you understand the need of a succession plan and most probably just procrastinate about it without a reason. That’s why we decided to give you the necessary push to create a succession plan today.

A succession plan is a must for every business owner and here is why….

….We never plan for the worst – natural disasters, personal health issues, death. It just comes when it comes and not being prepared might mean the end of your business. In the case of your hospitalization or death, your business is the last thing your family will want to deal with in their grief. More often than not, baby boomers are surprised by irreversible mental and physical conditions that incapacitate them faster than expected.

….You can prepare your successor the way you want. Knowing who will take care of your business allows you to transfer your management skills and leadership style to them so the transition is not stressful for your employees and clients.

….You create a retirement budget. With a succession plan you give your business enough time to grow and budget for your retirement fund.

….You make the transition easier. Every change is difficult – personally and professionally. With a succession plan you start creating the change early and introduce it gradually to give everyone time to adjust. When you do that it is easy to step down when the times comes.

We know that when you realize how essential for your business succession planning is, you will dive in do the research on how to do it right.

 Well here is the short version:

Contact your lawyer and simply put your ideas into an official written succession plan. It is not as complicated as you might think. Your trusted business lawyer will offer you options and alternatives. She might also suggest what is the best way to go for your particular business situation. In addition, she will provide solutions that you have never thought of and are beneficial for you, the business and your family.

What happens to your business if you are not around to take care of it?

Decide now, before it’s too late and someone else is forced to be in charge.

Get affordable legal help with succession planning here.