Operating a business in the current climate has introduced many owners to incredible challenges. Across every state, including Minnesota and Wisconsin, business owners have struggled with temporary closures, shifts in operations, and new regulations and precautions for re-opening.
Taking into account all these changes, now could be an excellent time to consider business succession planning.
It pays to plan
Having a business succession plan is crucial for many reasons. First, it allows a business owner to retain some control over what happens to the business when he or she leaves or can no longer run it.
Second, having a plan can give your partners, family, and employees confidence and continuity. If you fall ill or decide to leave the business, having a succession plan can ensure that the company continues operating and that someone you chose will be at the helm.
Finally, if you do decide to sell the business and cash-out, you can arrange how this will work and have a predetermined formula for determining the valuation.
Creating a plan that’s right for you
As one Investopedia article discusses, a business succession plan should fit your business and your needs. Consider the following details:
- Whether you have partners and how many you have
- Who you want to be your successor
- What you want for your business if you retire, transfer ownership, or pass away
- How you want to prepare and train others for the transition
- The legacy you hope to leave
Business owners who address these and other relevant issues in a business succession plan set themselves and their company up for a smoother transition.
No one knows what lies ahead in terms of individual and community health, or the fate of their enterprise in the midst of a pandemic. Having a succession plan in place can be especially critical in times like these.