Small Business Succession Planning
As a small business owner, what do I need to consider when deciding the best course of action for the future?
You’ve spent your life building and growing your business. You’ve invested time, money, and more sweat equity than you could possibly recall. Yet, you’ve come to terms with the fact you won’t be around forever to manage everything – and you’re not quite sure what the next step should be.
Sound familiar? If so, it may be time to meet with a reputable business succession attorney at the Winters Law Firm – a team of legal professionals with a keen understanding of the unique estate planning needs of small business owners. Consider the following as you plan for the future:
Issue #1: Family Dynamics: For many, the obvious choice in business succession planning is to pass the dynasty on to the next generation. However, this choice should not be made lightly, and oftentimes families hand over the reins to children only to see the business liquidated and sold a short time later. Thoughtfully consider the strengths and weaknesses of family members before making this pivotal decision, and do not be afraid to consider other options.
Issue #2: Transition Style: Are you ready to retire and get out of business altogether? Or would you rather stay on board in a “consulting” role as your children or partners continue in the day-to-day management of the enterprise? The answer will depend heavily on the current management structure, and whether there is anyone in place who knows the ins and outs of the business with the same keen attention to detail as the founder.
Issue #3: Liquidation: It may be a difficult concept to consider, but for some small business owners it makes the most sense to sell the business and use the proceeds for a comfortable retirement. For high net worth businesses, this option will also prompt the need for a strategic and well-thought-out estate plan.