Who Will Take over Your Business? 5 Tips for Business Succession Planning
Updated: Nov 8
Do you know who will eventually take over your business?
As a business owner, you want to make sure you leave your company in trustworthy hands. So even if your retirement is years away, you should have a proper succession plan in place.
Besides retirement, accidents can happen at any time, and if you pass away suddenly with no business succession plan in place, your family could have a long and stressful legal battle ahead of them.
Keep reading to strive how to protect yourself, your business and the ones you love with proper business succession planning.
Five Steps to Business Succession Planning
When you want to pass along your business to the next generation, you need to start business succession planning.
If you know you need a succession plan but aren't sure how to get started, here are five tips that will help you create a successful plan:
1. Keep Your Family Involved In Planning Discussions
It's critical that you talk to your family members throughout the business succession planning process.
You might want your daughter to take over the family business, but she might have other plans and could end up leaving your company to someone you don't want running things. So make sure you talk to your family and let them know your wishes before you create a plan. .
2. Start Planning As Early As Possible
Ideally, you should have a succession plan in place as soon as you start your own business. But if you haven't thought of creating one yet, it's better to start as soon as possible. You should never wait until you're five or even ten years out from retirement.
Keep in mind that you can always change your succession plan if things change in the future, but you can't create one if something unexpected happens to you.
3. Train Your Successors
No matter who you choose to be your successor, they will likely need some training and time to learn how to fully manage the company.
Make sure you start training them early, so they're always prepared to take over. You don't want your business to fail just because you're no longer in charge.
4. Be Practical
It's hard to plan for a time when you're not running your business or around to watch over it. Succession planning is emotional, but try to stay practical throughout your planning so you do what's best for the business.
5. Seek Professional Help
Succession planning isn't easy, so you'll want to seek help from lawyers, financial advisors and anyone else who you find helpful throughout the process.
These professionals will help you ensure you haven't forgotten any important details that will cause problems for you down the road.
Learn More About Succession Planning
Business succession planning isn't easy, but it's crucial to protect the company you worked so hard to create. To make the process a little smoother, meet with a professional from The Kelley Financial Group to make sure your finances are in order before you hand over the company.
If you'd like to learn a little more about succession and retirement planning, check out the rest of our blog.
*Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.