For many small business owners, their business is more than just a job; it is a full-time commitment that goes beyond business hours. It is a lifetime dedication. Unfortunately, in the midst of all the daily tasks that business owners manage to keep your business running, many forget to plan for the long-term. To protect yourself, your business partners and your loved ones, you need to ask yourself the following questions.
Do I know the real value of my business?
A business valuation is more than knowing your revenues and expenses. It includes a full accounting of your business, including all your assets, your debts, any associated ventures and the labor involved in your day-to-day business. It also means knowing the projected growth of your business over time and what that value is to an investor or interested buyer. Many business owners do not keep an up-to-date valuation, which puts them at a disadvantage in business and at a serious disadvantage when it comes to appropriately planning for business succession.
Do I have a plan for my retirement or passing?
Many business owners think they know what will happen when they retire or pass away, but do not actually have their plans written down. Then, when they go to retire, their child is uninterested in taking over or a business partner will not buy their share. This can delay your retirement and send you into financial chaos. You need to be talking about your retirement plans clearly and explicitly and have the legal infrastructure in place to follow through on your plans.
Does my attorney know what I want?
Sitting down with a lawyer and talking about your current business structure, your business value and your plans pulls together all the elements you need for a legally sound and well-planned retirement. It can make a difference between your maintained legacy and the inheritance you pass on.