Business Succession Planning – Getting Started
You’ve just started a new business, so you’re hardly at the point of where you should be thinking about succession planning, right? Wrong! When starting a new business, succession planning is actually on the top of the list. There are a number of reasons why planning early makes sense. And it’s not a one-time thing either. Once you have a plan in place, it’s an ongoing process that should be revisited each year, or at least each time your business or circumstances change.
Here are a few things you should be thinking about:
– Do you know your long term and personal goals?
– Do you have the proper corporate structure in place?
– Will you be relying on your business as a main source of income during your retirement?
A succession plan will help you prepare for the future of your business, your family and your retirement. Start thinking about your exit strategy now, so you can feel confident that everything is in place when you decide it’s time to step away from your business.
What is the end goal of a succession plan?
The end goal is having confidence in your plan. Whether it’s a planned exit strategy or an unexpected event such as illness or death, having a succession plan in place will help to avoid family disputes, pay unnecessary taxes, retain and reward key employees and ensure you are getting the proper value for what you’ve worked hard to build.
It can be overwhelming, especially since you’re tasked with the many other responsibilities of owning a business. Your financial advisor can help.
In the next series of blogs, we’ll be sharing information on what you should be thinking about during business succession planning and the important questions you should be asking yourself.
Please visit our special resource page to download our free Succession Planning Guide.