You have worked hard to help your business grow and succeed. However, what will become of everything you’ve worked so hard to build after you’re gone?
It’s important to consider a business succession plan, no matter where you happen to be in life. Doing so now can help ensure that your vision is carried out, regardless of what life has in store for you. Here are some key considerations to keep in mind when you’re thinking about putting together a business succession plan.
Do you intend to keep things in the family?
You should give serious thought to what the future of your business is going to resemble. Maybe your children or other family members have no interest in continuing the family trade. Perhaps those who are interested are incapable of operating a business to your standards. Maybe only one of your family members would like to take over.
You will need to decide whether you want your business to be kept in the hands of your family or sold to an outside party. If you opt to sell, you will have to determine how to divide the proceeds amongst your beneficiaries. If you are keeping the business in your family, you will have to decide whether everyone gets equal shares and consider how your transition plan is likely to play out.
Think hard about your successors
In an ideal world, you could just hand over the keys to the business to your kids and ride off into the sunset. In the real world, things are often messier. You will have to think about whether your heirs are the right people to continue your vision. Maybe your children don’t have the best relationship with one another. If they have equal ownership, will their rivalries spill over into the operations of the business? Think about the legacy you wish to leave behind and the impact that other people may have on the future trajectory of your company.
Turn to the advice of outside parties
When it comes to family-owned businesses, there’s often a desire to keep things within the family. However, outside parties bring an objective point of view and can identify things that you may not have considered. You should work closely with a skilled legal professional and others who can help you tailor a succession plan that best suits your needs.