As an entrepreneur, you put a lot of time, energy and effort into running your small business. You probably also remember quite well how difficult those first few months and years were just getting the company off the ground and taking only a few small steps forward at a time. When your company is still young or you believe you have several good years of entrepreneurship left in you, what will happen to your company after you step away is probably not on the forefront of your mind. Whether it’s through your passing or your retirement, something will happen to the business you worked so hard to build — and you have the right and ability to decide what will happen next through succession planning.
Succession planning for small business is often overlooked, but it’s extremely important. It’s more than just including a few lines in your estate plan. It involves creating a plan that will allow you to decide who will run your business next or what steps will be needed in the event of a sale of the company. As the owner, you can decide what will happen and how it will happen, down to even the small details. This is also important if you plan on selling at some point in the future. Your planning and future perspective when creating plans for your business can make it seem more appealing to potential buyers.
Whether you want to retire to a beach someday or hope that your son or daughter will follow in your footsteps down the road, you can start today by planning your business succession strategy. In the day-to-day operations of your business, it’s easy to overlook this important step, but you would be wise to put some protections and contingency plans in place for your own peace of mind, as well as for your successors and beneficiaries.
By Meagan Kerlin for Vertu Marketing LLC