Keeping a business profitable is probably one of the toughest questions facing a business owner. Indeed, the business may be thriving today, or this year, but ensuring the continuing viability takes planning, especially if you don’t plan on being in the business forever. With that said, succession planning should be an essential part of business planning.
This post will highlight steps business owners can take to prepare themselves for retirement.
Consider the ideal retirement – This may be easier said than done if a business owner is obsessed with their work or feel like they would not have a life without it. As such, the ideal retirement is about finding happiness or purpose outside of work.
Have initial meetings with business brokers – If passing on the business to children is not in the plans, knowing how much the business will yield on the open market is an important consideration because the proceeds could fund one’s retirement. If not, substantial questions may be raised about the true value of the business.
Revisit your succession plan – If procrastinating has prevented you from starting a succession plan, you are certainly not alone. It is a process that should be revisited from time to time. But keeping it in a desk or drawer for years on end is not helpful.
As the second half of 2017 begins, this may be a good time to meet with an estate planning attorney to discuss how you can achieve your goals. A skilled lawyer can advise you on the potential pitfalls of not creating a succession plan.
The preceding is not legal advice and is for informational purposes only.