3 Things Business Owners Should Know about Succession Planning

Owning and operating a business can take significant time and energy, and it’s common for much of the owners’ focus to remain on day-to-day operational issues. However, taking time to see the bigger picture and plan ahead is an important step in protecting the future of the enterprise. The experienced business succession planning professionals at Harvest Wealth Partners work closely with business owners to address this highly important, yet too often overlooked, aspect of long-term business success. Here, we share three basic points on succession planning.

Succession Planning Can Help Protect the Future of Your Business

Business succession planning can be compared to estate planning for your personal property and assets. This type of planning requires you to consider many factors and possibilities and take measures to address continuity of ownership in many future circumstances. Having a well-developed succession plan in place can be a great benefit to many business owners. Seeking experienced guidance during the planning process can help you solidify your priorities and goals, and work toward incorporating them into your exit strategy. 

There are different options for succession planning, including planning to sell your business or pass it to family members. If you intend to sell your company, advance planning and preparation can be highly beneficial. We help our clients understand the potential benefits of various succession options so they can move forward from business ownership with confidence. 

You May Need a Formal Plan for Transferring Ownership to a Family Member

If you wish to pass on your business to the next generation, the transfer process may go more smoothly with the right advanced planning. If you want to remain active with the business and help guide the new owner in taking over, you may consider strategies to shift ownership in a gradual manner. This may allow you to maintain some control of the business operations while reducing the disruption that might come with shifting ownership to your children or other younger – and possibly inexperienced – relatives.

Not Planning to Retire? Your Business May Need a Plan for that Too

Many business owners have no desire to walk away from the business they’ve built and intend to continue working as long as they are able. In these situations, a contingency-based plan might be appropriate. These succession plans aim to protect and maintain business control if an owner becomes unable to keep overseeing operations. Such plans might come into play if an owner passes away, becomes incapacitated due to illness or injury, or gets divorced. Insurance coverage may be available for the owner’s interests, as well as strategies to transfer control and ownership to successors or existing partners. The plan may also have the goal of selling the business upon the owner’s inability to continue.

Our Experienced Business Succession Planners are Here to Help

Just as every business is unique, so too are its succession planning needs. When thinking about the future of your company after your ownership ends, you likely want to plan for a smooth transition of control. The Munster business succession professionals at Harvest Wealth Partners can help you navigate this planning process to protect your business. Our team seeks to understand your business and goals for its future, and we help to develop strategies that fit your company. Contact us for more information today.

This material was prepared for Harvest Wealth Partners financial advisor’s use.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.