Have you planned for your company's future after you're gone? Business succession planning is proving to be one of the most neglected areas facing business owners. Some studies have shown that only 26% of business owners have a written continuation plan. Of owners over age 60, only half have put their plans in writing.
Developing a succession plan
In its most basic form, a succession plan provides a road map for your partners, heirs and successors in the event of your death, disability or retirement. It can also be used to orchestrate the sale of your business. Your plan can include:
Business succession planning is often a complicated process involving numerous legal and tax issues as well as family relationship matters. Consult a lawyer, accountant or financial planner to help you evaluate your options for creating a strong plan.
Your personal and professional goals are determining factors. Some important questions you need to answer are:
Bottom line: If you have not considered developing a succession plan, there's no time like the present.