Business Succession Planning: 4 Questions To Ask Yourself
As any entrepreneur knows, owning a business is an all-encompassing process. Your business requires constant attention and energy in order to thrive, and as the business owner you are constantly called upon to make important decisions regarding your company's livelihood. It will be up to you to determine how best to care for it throughout its various stages of growth. Ultimately, you will also have to decide what will happen to your business when you no longer wish to manage it.
Business Succession Planning
If you are like most people, you probably hope to retire someday. When that day comes, you will be required to make the (sometimes tough) decisions about what should happen to your business in your absence. Our Lake of the Ozarks business attorneys are here to help you devise the right strategy for your business succession plan. Asking yourself these questions can get you started on the right track.
Question #1: Is There Someone I Want To Take Over The Business?
Generally, most business owners agree that leaving the business to someone you know and trust is the most favorable option. This option offers valuable peace of mind by ensuring that your business goes to someone you trust to manage it with the same integrity and values that you did. As you prepare your business succession plan, consider whom may be available to inherit your company when you wish to retire. Do you have an adult child or a long-term employee who may be up to the task?
Question #2: Is My Chosen Successor Interested In Inheriting My Business?
This can sometimes be one of the most challenging questions to answer, but it is important that you give it the time and attention it deserves. In order for your business to continue to thrive, you must leave it to someone who shares the same passion for it that you do. You may love the idea of passing your company to your son, for example, but it is critical that you allow him to be honest with his response. If he would rather pursue an alternative career path, your business will likely be better off in the hands of someone else.
Question #3: What Do You Want Your Continued Role In The Company To Be?
Deciding how and when to step away from your business is only part of the process; you will also have to decide what you want the next phase to look like. Do you want out of the business completely, or do you wish to remain involved in an advisory capacity? If you wish to remain involved, to what extent will your successor have the authority to make his/her own decisions? Once you decide what you want the dynamic to look like, it is important that you clearly communicate your expectations to your chosen successor.
Question #4: How/When Will The Transition Take Place?
Transitioning ownership of a business is rarely as simple as handing someone else the keys. It will take time for your successor to learn the subtle nuances that make your company unique and successful. We recommend that you devise a strategy for preparing your successor to fulfill his/her new responsibilities. In addition to identifying the general time frame to begin the succession process, we encourage you to determine a timeline and strategy for conducting the transition process.
Our Business Attorneys Are Here To Help With The Process
However you decide to handle the transition process, it is important that you capture your wishes in writing. Having a documented process to refer to will help guide your successor (and you) as you navigate the sometimes emotional process of handing the reigns to someone else.
Even if you do not plan to retire for several more years, it may be wise to begin making decisions about what you want the process to look like eventually. Our business attorneys in Camden County MO have helped multiple businesses prepare for this important transition process. We hope you'll consider reaching out to the Law Offices of Phillips, McElyea, Carpenter, & Welch, P.C. as you prepare a succession plan for your business.
The choice of a lawyer is an important decision and should not be based solely on advertising. When you need a knowledgeable attorney, we invite you to contact us to set up a consultation. Evening and weekend appointments are available. We have access to interpreters.
Like Us on Facebook
Business Succession Planning
If you are like most people, you probably hope to retire someday. When that day comes, you will be required to make the (sometimes tough) decisions about what should happen to your business in your absence. Our Lake of the Ozarks business attorneys are here to help you devise the right strategy for your business succession plan. Asking yourself these questions can get you started on the right track.
Question #1: Is There Someone I Want To Take Over The Business?
Generally, most business owners agree that leaving the business to someone you know and trust is the most favorable option. This option offers valuable peace of mind by ensuring that your business goes to someone you trust to manage it with the same integrity and values that you did. As you prepare your business succession plan, consider whom may be available to inherit your company when you wish to retire. Do you have an adult child or a long-term employee who may be up to the task?
Question #2: Is My Chosen Successor Interested In Inheriting My Business?
This can sometimes be one of the most challenging questions to answer, but it is important that you give it the time and attention it deserves. In order for your business to continue to thrive, you must leave it to someone who shares the same passion for it that you do. You may love the idea of passing your company to your son, for example, but it is critical that you allow him to be honest with his response. If he would rather pursue an alternative career path, your business will likely be better off in the hands of someone else.
Question #3: What Do You Want Your Continued Role In The Company To Be?
Deciding how and when to step away from your business is only part of the process; you will also have to decide what you want the next phase to look like. Do you want out of the business completely, or do you wish to remain involved in an advisory capacity? If you wish to remain involved, to what extent will your successor have the authority to make his/her own decisions? Once you decide what you want the dynamic to look like, it is important that you clearly communicate your expectations to your chosen successor.
Question #4: How/When Will The Transition Take Place?
Transitioning ownership of a business is rarely as simple as handing someone else the keys. It will take time for your successor to learn the subtle nuances that make your company unique and successful. We recommend that you devise a strategy for preparing your successor to fulfill his/her new responsibilities. In addition to identifying the general time frame to begin the succession process, we encourage you to determine a timeline and strategy for conducting the transition process.
Our Business Attorneys Are Here To Help With The Process
However you decide to handle the transition process, it is important that you capture your wishes in writing. Having a documented process to refer to will help guide your successor (and you) as you navigate the sometimes emotional process of handing the reigns to someone else.
Even if you do not plan to retire for several more years, it may be wise to begin making decisions about what you want the process to look like eventually. Our business attorneys in Camden County MO have helped multiple businesses prepare for this important transition process. We hope you'll consider reaching out to the Law Offices of Phillips, McElyea, Carpenter, & Welch, P.C. as you prepare a succession plan for your business.
Law Offices of Phillips, McElyea, Carpenter, & Welch, P.C.
The choice of a lawyer is an important decision and should not be based solely on advertising. When you need a knowledgeable attorney, we invite you to contact us to set up a consultation. Evening and weekend appointments are available. We have access to interpreters.
We accept Visa, MasterCard, and Discover.
85 Court Circle N.W., P.O. Box 559
Camdenton, MO 65020 GET A MAP
(573) 346-7231 - Telephone
(888) 236-2485 - Toll Free
(573) 346-4411 - Fax
Comments
Post a Comment