Will Your Small Business have a Happy Ending?Small Business Succession Planning Robert Moment
There is no question that as a small business owner you have
persevered and worked hard, dedicating your life to the success of your
company. That being said, don’t you think a company you put all of your
energies into, deserves the chance at having a happy ending? Have you
considered the impact your death, disability, retirement, or even
divorce could have on your small business ? If you are the owner of
a small business it is time for you to stop thinking of only what is
happening now, and start focusing on what could happen in the future.
Therefore, you need to put your priorities into perspective by
protecting yourself and your business with a succession plan. A
business succession plan is what you need to ensure that your business
has a happy ending by remaining secure, regardless of what may happen
in the future. In particular, a succession plan allows your
business the chance to be able to stand up to any challenges that may
occur along the way. For instance, certain setbacks that you might
experience may be entirely beyond your control such as divorce,
disability, departure and death. But with a business succession plan
you have the chance, as a small business owner, to ensure that
regardless of what may happen to you, your business will be protected. The
following are a few aspects you should to take into consideration when
creating a business succession plan for you small business: How to Begin the Succession Planning
- Since you need to make choices before you can really begin achieving
your succession planning goal, you must first think about your long
term business objectives and ask yourself important questions such as –
· Will I sell my small business? Of
course, business succession planning begins with much more than simply
deciding who you will be giving your business to in the event that you
can no longer run your company, or wish to sell it. Additionally,
succession planning is about keeping your small business afloat and
successful to ensure that your absence will not devastate your company.
Therefore, in order to maintain future control of your business, you
will need to begin your succession planning by making choices that will
concern things such as: · ownership objectives You
will want to keep in mind, however, that due to the fact that every
action you take with succession planning will result in a reaction, you
will require the assistance of experienced experts when developing your
plan. Understand the Dollars and “Sense” of Business Succession Planning –
Like any type of business preparation, your business succession plan
needs to be orderly and handled carefully if you don’t want to suffer
the consequences of financial losses – or worse – the loss of your
small business. That being the case, you need to know exactly what you
are dealing with, and how you can achieve the most of your planning. The
one mistake you will not want to make is to overlook your business
finances. You can help keep your business secure by properly using the
following, and more, in your succession planning before problems occur: · Life insurance Furthermore,
you will find that with an orderly succession plan, you will be
avoiding the possibility of your business having to be sold to pay off
the estate tax, in the event of yours or (if you have one) your
partner’s death. It is no secret that estate taxes can claim up to 55%
of an estate that is taxable, which is no mystery why so many
businesses fall into debt, become bankrupt, or are sold due to the
death of the owner or partner. In addition, another aspect that
needs to be considered is that clients are most likely to do business
with other businesses after the owner or partner is deceased. However
with the proper succession plan, your business should be able to
maintain any regular clients - or if not - it will be better equipped
to survive the possible drop in assets if a slow period should follow. Know How to Write Your Happy Ending –
Remember, when all is said and done, the outcome of your succession
plan depends entirely on the choices you make regarding the future of
your small business. It is imperative that you take the time to make
the best choices that will allow you to implement a succession plan,
which keeps you in control of the outcome that involves the transfer of
your company. By knowing how to ensure the prosperity of your business
future with a succession plan, is how you will write your happy ending. |
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