Earlier this month, we talked about the benefits of establishing a board of directors for your small business. Did you know you should also be thinking about who will take over your business and position, even if you’re nowhere near retirement? That’s right, knowing who will take over your business is an important part of growing your company.
Right now, I have client who has done an incredible job of building a small empire over the last 30 years. His sales are solid, overhead is low and he has great employees. But now that he’s five to seven years from retirement and ready to enjoy some of the fruits of his labor, none of his children want to take over the business. Should he try to force one of them into his position or sell the business he loves?
My client isn’t the only one finding himself in this predicament. According to the Succession Reset: Business Succession in the 21st Century study, conducted by the accounting firm of Baker Tilly, four out of five family-owned businesses in the U.S. are not ready for succession.
If your company is operating without a succession plan, you could be jeopardizing not only your future, but that of your business. Here are some things to consider when naming a successor:
My client is feeling a lot better about the future of his business. He and I are working together on a five-year succession plan that I know will work out for him.
If you have questions about your company’s succession plan or lack of one, don’t hesitate to e-mail me or reach out to anyone on the Brigade Bookkeeping team. We love helping our clients feel at ease when it comes to any and all of their finances, current or future.
Have a great week!