Don’t Wait to Create Your Business Succession Plan

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When you inherited the family business on Broadway in Redwood City, it was a mom and pop store with one location. Over the years, you weathered many economic storms and managed to build the business into a multi-location operation. Now, with senior citizenship in front of you, it is time to move on to the next stage of your life. Where do you begin what seems like a complicated and daunting task?

To start, you can learn about the basics at the U.S. Small Business Administration (SBA) web site. The SBA offers information to those who are planning to exit the primary management role of a small business. As you think about a succession plan, you should:

  • Identify who is the best person to succeed you. This is probably the most difficult yet critical decision you must make. Start early and identify those who have the skill and capability to take over.
  • Provide your successor with the specific training he or she will need to learn all of the aspects of your operation.
  • Create a calendar for your exit and for your successor to assume full control.
  • Think about your own retirement and develop a plan for what you’d like to do when you are no longer with the business.
  • When the calendar says it’s time to go, be sure that your successor is ready and prepared to keep the business growing.

Posted in Business Law, Estate Planning | Tagged business succession plan, estate planning