Business owners work hard to achieve success. But no matter where you are on that path, you need to stay strategic. By planning for both the future and the unknown, you’ll rest easier knowing you have a solid business.
Many small business owners don’t realize that succession planning is much more than just getting ready for retirement. It also includes making the right decisions to ensure the long-term viability of your business. This helps you build and maximize value no matter what you decide to do in the future.
A well-prepared succession plan will protect your investment and family or successor from the possibility of long-term illness, disability, or even death. Without a solid strategy, your business could spiral out of control quickly, leading to serious financial implications for everyone involved.
Here’s a great tip: Your succession plan should start on the same day that you start your business plan. Key considerations should include identifying key succession team players and including specific directives in the event you’re unable to work. Many small business owners end up selling their business to employees or even competitors.
There are significant tax implications with each decision that you make. Make sure you consult a CPA along the way to help you maximize your value and reach your goals. Remember – do what you do best, and let a CPA do the rest!