SUCCESSION PLANNING 2.0
Last June, I wrote that every business owner must have a succession plan. A business owner must have a plan in place to keep the business running. Not ‘should,’ not ‘think about having one,’ but must. In fact, the New York Times just wrote an article about succession planning.
This is a great quote: “The simplest form is the owner dies and it’s unclear how the business is going to pass to someone else,” Ms. Bramer said. “Let’s say there are multiple kids. What’s best for the family? What’s best for the business? What did Dad intend? Once you layer in other business partners or other employees who thought they owned part of the business, it becomes even more complicated.”
That is exactly the problem with no succession plan. The owner dies, and chaos ensues.
There are multiple layers to a succession plan, and I can help with some parts. Just a list of the businesses’ accounts, passwords, or assets is the start of a succession plan. I work with business owners to make sure the corporate documents are in order. Then we discuss a plan for the transition of shares or membership interests. The transfer should be seamless so the new owner can hit the ground running.
If you want to discuss succession planning, feel free to reach out, and I can assist. Just remember, “[i]t might not have been easier with a plan, but at least [the new owner] would have had a sense of what [they] needed to do.”