4 Essential Steps of Small Business Succession Planning

Small business succession planning is the process by which you ensure that the legacy you’ve spent years growing is secure after your retirement. While every business is different, the question of what happens next is always on the horizon. Read on to learn more about small business succession planning and how to handle it.  … Continue reading →

Small business succession planning is the process by which you ensure that the legacy you’ve spent years growing is secure after your retirement. While every business is different, the question of what happens next is always on the horizon. Read on to learn more about small business succession planning and how to handle it.

 

1.) Write a business plan. This isn’t the same kind of business plan you may have drafted when you were first starting your enterprise. A business plan for business succession purposes details the future of the company as you see it, particularly after you’ve moved on. It’s possible that only you or perhaps your lawyer will ever see this document, but it is useful for figuring out where your priorities lie in relation to succession.

 

2.) Pick a successor. Once you know where you want your business to go, it is time to choose a successor (or two, or three). It is important to make this decision objectively, in terms of what’s best for the company. A lawyer can aid in this process by offering impersonal legal advice. Fear of bruising a partner’s ego or damaging relations with a friend are not good enough reasons to pass the reigns to someone. Be sure you choose the person or persons best fitted to serving the direction you’ve laid out for your company. Your legacy depends on it.

 

3.) Plan for contingencies. While you can’t plan for everything, anticipating future problems is an important part of small business succession planning. Everything from personal feelings to unexpected disasters can come into play. Make sure your succession plan is catastrophe-proof before continuing.

 

4.) Hire a lawyer. Having an attorney assist you in the growth and succession process is always beneficial. They understand complicated legal concerns such as tax liability and shareholder agreements, and can help you navigate all that red tape when crafting your business plan.

 

Looking to safeguard the future of your small business? Talk to the experts at Goldenberg Heller & Antognoli, P.C. Our attorneys have years of combined experience in small business succession planning, and will work with you to create a plan that fits your needs. Call us today at 800.782.8492 to begin planning for the future.

Small Business Succession Planning: A Crucial Part of Your Estate Plan

If you own a small business, drafting a detailed succession plan is crucial, especially if you aren’t the sole owner or operator. If something unfortunate happened to you tomorrow, what would happen to the company you’ve worked so hard to build? Would it be divided up in probate court? Would it go to some board member… Continue reading →

If you own a small business, drafting a detailed succession plan is crucial, especially if you aren’t the sole owner or operator. If something unfortunate happened to you tomorrow, what would happen to the company you’ve worked so hard to build? Would it be divided up in probate court? Would it go to some board member you barely know? Would your children receive any part of it? If you don’t know what your company’s future looks like without you in it, it’s time to start small business succession planning today.

What Small Business Succession Planning Does For You

Small business succession planning helps set in stone who will own, operate and run your company once you pass on. Whether you want your business to go to your children, wife, business partner, or sibling, succession planning can help you do that. Essentially, it lets you guarantee the future success of your company by placing it in the hands of your most trusted friend or family member.

Business succession planning can also:

  • Reduce tax exposure and risks, so your company isn’t vulnerable to exorbitant death taxes and probate costs. While these may not worry you now, they could put a huge financial strain on your spouse, children and family, and they can lower the amount of your estate your loved ones are able to receive.
  • Prevent interfamily disputes. If you have multiple children, a succession plan is even more important. There’s a good chance two or more of them will be interested in running your business after your death. If there’s no established line of succession in place, this could cause a rift between family members.
  • Provide for your future generations. Including your children in the succession plan can help you provide for them financially even after your death. They can use your successful business as a line of income for years after you pass, carrying on your legacy for their children, too.

Do you own a small business? If you don’t have a succession plan in place, this is the time to act. Contact Goldenberg Heller & Antognoli, P.C. today. We are experts in small business succession planning, and we can help you protect your company’s (and your family’s) future.