Business Succession Planning
Written by admin on Saturday, April 10th, 2010 in Change Management.
If you have not considered what you would do with your business should you need to transfer, you may want to do this. A great way to do this is through business succession planning. From the outset, this may seem intimidating, but it is something that can be done fairly easily. It does not matter how soon or in the future you may be planning to transfer, or if you aren’t even thinking about it yet, this is an important plan.
In many other aspects of your life, you may have plans in place, and those who help you achieve those plans. For some this is very much like having a tax adviser for your finances, or a personal trainer for fitness goals. No matter what goals you have, having a guide in place is a big benefit.
It really is intelligent business planning to make sure that you’re transfer goes smoothly. There are many things to consider, and being able to work through questions and concerns is a good place to begin. Think about what you leave behind to those in your business, and in your family.
It does not matter if your business is a large scale retailer, or even just an internet business income. You can benefit from having something set up in case of a need to transfer. The consequences of not doing so may be worse than you imagine- from tax issues to debt, perhaps even the business closing down. Taxes, especially estate taxes are the cause of many businesses closing their doors.
There are a couple of things you can do up front, easily. Life insurance, annuities and disability insurance in place can help. But also, think about the capital that would be needed to continue running your business. Consider what sort of plan you can set in place to be sure things go ahead in an efficient and productive manner, were you to not be around for whatever reason.
Other factors involve trust- will the clients or customers that have been built up over the years remain, or is there an alternative, just in case they do not? Partnerships may also require a buy out option, is that in place? There are many factors to consider long before a business transfer takes place, and already knowing exactly what can happen, what will happen and what needs to happen is best.
Being able to look at the situations before they arise is really a great way to make sure your business continues to thrive. Having a good transfer plan will make sure that your business carries on productively, should you for some reason be unable to continue running it.