It is impossible to predict the future, but you can take steps to protect your interests in the years ahead. As a small business owner, you know the importance of planning and preparation when it comes to your success, but that also applies to what will happen to your business after you retire or pass away.
Succession planning is an important step for every individual who owns a small business or family-owned business in Ohio. By taking the steps necessary to ensure that you have a solid plan in place, you can control what will happen to your company and protect the interests of your loved ones.
Make a plan to pass on your business
There is no one-size-fits-all approach to succession planning. Your plan should meet your unique needs and objectives, and it should be suited for what you hope will happen in the future. Some steps that you can take to build a plan that is right for you can include the following:
- Your retirement plan: If you ever want to step away from your business, you must have the financial means to do so. Knowing that you can retire with confidence can help you and your successor during the transition process.
- Choose your successor: Whom do you want to assume your role? Whether it is a family member, business partner or dedicated employee, you have the right to choose who will run your company after you retire.
- Have a time frame: You have the right to decide how and when your successor will assume operational control of your business. This allows you ample time to prepare your successor and get ready for your personal retirement.
- Start training: It can take years to learn how to successfully run a company. Once you know who will succeed you, there is no time to lose in training and preparing that person for the task ahead, even if you have no plans to step away in the near future.
- Put your plan into action: A succession plan does you no good if you never actually put it into action. Start working toward your future goals as soon as possible to avoid complications and legal issues in the years ahead.
Succession planning can be complex, and you may find it beneficial to seek the guidance of an attorney experienced in this particular area of law. This effort not only ensures that you can control what happens to the small business you worked so hard to build, it can also protect the interests of your successor and employees. You can decide what happens, but you have no time to lose in developing a solid succession plan for your company.