Like most entrepreneurs, you worked hard to create and grow your business to ensure it thrived. Successful business owners put in a lot of time, money and effort to establish the products or services that make them stand out from competitors. Such commitment and effort no doubt reflects the importance of your business in your life.
Unfortunately, few business owners focus on planning for succession or an exit when they finally step down. Unless you plan to live forever, there will come a time when you must transfer to someone else control of your business. Business succession planning will allow you to hand over the reins secure in the knowledge that your company, and your legacy, will continue to thrive.
Potential Problems When Leaving Your Business
The following are any number of potential problems that may arise when it is time to exit your company, especially when you wish to keep the business in the family.
- Sibling rivalry erupts between adult kids who want to take over.
- The person you choose to succeed you backs out.
- Employees or board members are resistant to the change.
- There are complicated business, tax and estate planning issues that arise during succession.
- Your succession candidates do not share your vision for the future of the business.
- Chaos and resignations ensue after informing your staff of your exit.
- Customers and suppliers disappear.
You can avoid these and other business succession problems if you start planning well before you are ready to exit. Experienced legal representation can help you ensure a smooth transition. We offer many business-related resources on our firm’s website if you need further information on business succession planning.