Ask most business owners what the future looks like for their companies and you will likely get stories of expansion, franchising and expanding niche marketing. What you rarely hear is a plan for the business succession that one day will inevitably take place.
It’s understandable why business owners tend to sidestep those conversations. For some, the business succession will take place at their demise. Not having a clear and orderly transition in place can lead to chaos both within the family and also the larger corporate structure. That’s never good and surely not the business owner’s intention.
Your business succession plan should be unique
There are no boiler-plate business succession plans that are capable of reflecting each business owner’s specific circumstances. However, in general, your business succession plan should address the following points:
- The company’s true value
- The timing of the transition
- The intended successor(s)
- All tax implications
- How the plan will be implemented
- Define the communication chain of family, employees and clients
- Allow for contingencies
Neglecting this very important part of your business can have an extremely detrimental effect on the morale of the employees and the reputation of the business can also suffer. Not to mention it can force grieving family members into making decisions about vital matters at the time that they are least equipped emotionally and mentally to make the optimum choices.
Don’t put your business succession plan off for another day
Your Highland Village business law attorney can assist you with drafting a transitional plan that ensures the continuity of the business with the least negative impact on everyone involved.