Many small business owners don’t have a succession plan implemented which could leave them unprepared for retirement, disability or death.
Should you have a business succession plan?
If you own a small business the answer is YES. While you are building and running your business the thought of selling it or passing it on aren’t on your mind. This day however will eventually come and just like all business matters, the earlier you plan the more successful the changeover will be.
Business Succession Planning is an extension of your personal estate planning but with a focus on the future of your business.
What is a business succession plan?
This is a plan that determines how the business will be transferred to others and outlines the steps for the transition. A good succession plan ensures that your wishes will be carried out should you suddenly die, no longer be able to run your business due to illness or a disabling injury. A business succession plan could also help you ease into retirement and provide a retirement income.
6 Key Steps of a Business Succession Plan
- Assess your current situation
- Understand your business and family goals
- Identify and prioritize action plans
- Select the best action plan
- Document your decisions
- Implement your plan
Business succession planning involves business and personal issues that need to be considered together. Every plan is unique and it is important to develop your plan in consultation with professionals.
For more information on Business Planning please contact Ana Martinho today!