What is Your Small Business Succession Plan?
Being a small business owner is hard. You’ve worked long and hard to get where you are. After your business is successful, it’s time to think about what would happen if you want to retire or if you can no longer make business decisions. It’s time to create a business succession plan.
What happens when a business owner is no longer willing or able to run a business?
Sometimes business owners will retire and either close or sell their company. Other times, the owner may want the company to continue, perhaps as a family-run business. A business succession plan ensures your business can operate without you if necessary. It really depends on the goals you have set for yourself, your family, and your company.
What should I do if I think I need a business succession plan?
Take some time to look at your finances, both personal and business. Think about where you’d like your business to be in the future and who you’d like to take it there. Maybe a family member already involved in your company is eager to take on more responsibility. Or maybe you need to choose leadership from somewhere else. Do you want to expand? Is the business an important part of your legacy?
After considering all the details and analyzing your business’s future needs, contact an attorney who has done this type of work before.
Is There a Typical Business Succession Plan?
These plans vary from situation to situation, but some things are common: You’ll need to make decisions and have documentation as back up. One person’s plan might require dissolving the business. Others may involve restructuring the company. Some companies use insurance policies to provide money to keep the business going if something happens to the owner.
Does this affect my other estate plans?
If you are a business owner, then business succession planning goes hand in hand with your other life care planning. Talk to your attorney to find out what changes should be made to your life care plans.
Should I call an attorney?
Yes, it’s best to get the expert advice of an attorney who has experience with this type of deal. There’s more than one way to craft a business succession plan. Whether it’s a mom-and-pop store, a partnership, or a corporation, though, it’s still important to make sure everything is in place.
Francisco Sirvent has the know-how to analyze your current situation and help you make thoughtful decisions about your business. Call us at (480) 418-8448 to set up an appointment. Although located in Chandler, we also work with clients in the surrounding communities like Sun Lakes. Gilbert, Mesa, and Tempe.