Creating a Successful Business Succession Plan: Part 1
If you own a business in Colorado, one of the most important type of plans you should have concerns business succession. You need some form of arrangements in place to protect your business if something were to suddenly happen to you. Just ask yourself, what would happen to your company if you suffer a critical injury in a car accident or die from a heart attack? As depressing and unsettling as the thought of those situations are, thinking of them can help you to take measures to ensure your company’s longevity long after you are gone.
It is never too early for you to create your company’s succession plan. Take a look at some key considerations to include when drafting your business succession plan.
Choose a good successor
You do not want your company and all you have worked for to fall into the wrong hands when you are unable to maintain the helm of your corporation. You do not have to choose someone from your company. You might feel your organization will be in better hands if you name a family member or someone from another company as your successor. Regardless of who you choose, be sure to take his or her character, personal/family obligations and integrity into consideration first.
Seeking professional assistance
You want the transition to be as smooth as possible. To achieve that, you need to know how much your business is worth. You might want to have an independent valuation done so you know exactly what you have to work with. This makes it easier for you to put together details about how the sale of your business will be financed.
Business succession planning requires you to consider multiple outcomes. You might want to get professional help to keep from overlooking critical elements. Do not rush when making these arrangements. The smallest mistake can cause complications that can interfere with the success of your business plan.