We pour ourselves into our business. Our time, our money, and so much more goes into building up a successful enterprise and seeing it thrive throughout the years. For all that we put into our businesses, it is surprising that so many people continue to operate their businesses without a business succession plan in place. Do not make the same mistake that so many business owners do. Put a business succession plan in place and take a critical step to protect the future longevity and growth of your business far after you leave it.
Do You Have a Business Succession Plan in Place?
As a business owner, you probably have a packed schedule every day. On top of this, you might not even be able to imagine a time when you would not be involved in your business. Whether planned or unplanned, there will likely come a time when you want to retire or sell your business to take on other adventures. When this time comes, you will likely want to know that your business will continue to succeed after you move on. A business succession plan can help make this a reality.
The goals of a business succession plan are to ensure the preservation of a business in the event that the business owner retires, passes away, or chooses to sell the business. It can help ensure a stable transition for the business into the hands of the new owner. Without a plan, the company falls at risk of being destabilized and forced to sell or shut down. Every business succession plan will be different because every business is different. In any case, the plan should be designed in a way that anticipates the time in which the business will transition. It should identify one or more successor who is equipped and prepared to take over the business. It should also outline a transition plan which may include transitioning certain key employees into other roles and training employees through the transition process. Tax planning can also be an important part of a business succession plan, especially if the succession plan involves the sale of the business. Most businesses focus on efficient tax planning, which means minimizing its profits and maximizing the number of deductible expenses. The taxable value of the business is thus, most of the time, minimized to reap the tax benefits associated with this. Minimizing the value of the business can be detrimental, however, when it comes time to sell the business. So, if part of your business succession plan is selling the business in the next few years, you may want to make an adjustment to your tax strategies in order to maximize the value of the business to prospective buyers.
Business Law Attorney
Putting a business succession plan in place can be a solid step towards protecting your business and helping to ensure its continued success. Talk to the dedicated business law team at Jones, Gregg, Creehan & Gerace about your options. Contact us today.