Owning a business comes with great responsibility. It’s likely that you have put forth a lot of time, effort, and energy into building a successful business. While it’s no surprise to business owners that a business succession plan is necessary for any business, many business owners grapple with the significant decisions they will need to make. Because of this, it’s not uncommon for business owners to put off this process. As a result, many business owners never put plans in place. Business succession planning can be a complicated and challenging process. A good business succession planning lawyer, like a business succession planning lawyer in Sacramento, CA, can provide you with the answers to common questions business owners may have regarding business succession planning. Here is a short guide to the process:
What is a business succession plan?
Business succession plans encompass a series of financial and operational decisions for when the time comes for you to pass your business over to someone else. There are a number of reasons for this to occur. While the most obvious and common reason is retirement, it’s also important to have a plan in place in the event that you become incapacitated. A good attorney can assist you in making key decisions, including who you will transfer ownership to, and how you will do so.
When should business succession planning start?
You should start business succession planning right away. While it may be a good idea to start from day one, an attorney knows that this is rarely the case. Whether you are in the initial start up phases of your business, or are planning for your retirement, a lawyer can help you to draft a business succession plan, and then implement it.
When should a business succession plan be implemented?
Although it may be surprising, your business succession plan should be implemented long before retirement actually comes. Business succession planning should start several years before you pass off your business over to a new owner.
How can I benefit from a business succession plan?
Creating a business succession plan provides a number of benefits to owners. A well executed plan can help to ensure the success and longevity of your business. Planning gives you the opportunity to make business decisions and identify the successors of your business. Additionally, you will be able to put your plan into place to solidify the success of your business.
When should the business be sold or transferred to the new owner?
When considering business succession you will need to decide whether you will sell, close, or transfer ownership of your business. This will be one of the most important decisions you stand to make. An attorney knows that you will want to carefully calculate your options. He or she can guide you in your decision making and help you time the transfer of ownership in the most appropriate way possible.
Business succession planning can bring to light the reality that you will need to plan for the future. The thought of retirement, or even the unexpected can be overwhelming. Because of this, it’s not uncommon to want to put planning off for another time. It is important to develop a plan that you can be confident in and help to safeguard the success of your business, though. Contact a law office today to get started.
Thanks to Yee Law Group, PC for their insight into business succession planning.