People who start a business know that it take an incredible amount of work to not only open a business, but to keep it running. Considering how much work it takes to start and maintain a successful business, it is crucial to have in place a plan for your business to continue operating when you exit the company or pass away.
This type of planning doesn’t have to happen all at once, so try not to get overwhelmed. You can start by making some basic decisions that help you establish your goals and set the foundation for your business succession plan.
Sharing your vision
It’s not enough to make plans and set objectives for your business and its future; you also need to share that information with your family and key members of your company. This enables them to make decisions that support your vision in the future. Sharing your views and aspirations for your business is a small but critical step toward protecting it.
Will your children take over operations, or will you have a third party or key employees take over? Deciding whom you want to take over operations is essential in determining how to plan for the future and what you can do now to facilitate continuation of the business.
Establishing process of transition
Transitioning the operation of your business to someone else can be problematic without a plan. When planning for the transition, think about gradual versus immediate changes, as well as what you can do to maintain stability for your clients and employees.
Family business owners across Nashville have a lot to think about when it comes to the future of their company, and there are great challenges with passing a company on. In fact, as noted in this Inc.com article on family-owned businesses, less than 33 percent of family-owned businesses survive the transition from one generation to the next.
With this in mind, it is crucial that you set your business up for success by creating a succession plan with the help of an experienced attorney. You can start with these basic elements and build on them over time. Putting off this planning altogether can spell disaster for your company, so make the decision to get started before it is too late.