1. Are you willing to face the reality that you will retire or die at some point?
You have worked hard and made important sacrifices for your business in order to leave a legacy for your family. It can be difficult to think about death and how your family business will continue without you, but it is inevitable, so it should be planned out.
2. Do you want your business to continue after you are gone?
If so, can your family run the business or is there someone else who needs to step in? If not, do you have a plan for winding down the business to save time and money for your family?
3. Do you have a plan for the operation of your business should something happen to you?
You have insurance. You have a client/customer base. You have receivables. You may even have working capital or a line of credit. But, do you have a road map for someone else to utilize those things and keep your business running when you can't?
4. Can someone else run your business if something happens to you?
Take the time to not only identify the key people in your business, but take the necessary steps to train your key people so that they can effectively keep your business running in the event you are unavailable. This is not about making your role expendable, after all you are the heart and soul of your business.
5. Do you have an estate plan in place that contemplates your business interests?
Your business, like the other things you own, are part of your estate. All of your estate planning documents need to be carefully designed to fit together to create a business succession plan that works for your.
6. Are you willing to pay the costs associated with protecting your business interests for your family?
As with all things, "you get what you pay for." It is without a doubt that the current costs of a business succession plan are greater than the current costs of not planning. However, there's another saying: "failing to plan, is planning to fail." Any current savings you may have by not creating a business succession plan will likely be minuscule compared to the costs (namely the loss of the family business altogether) and efforts cleaning things up when you don't have a plan.
It is important to plan and prepare for your family and business' future. Doing so minimizes the possibility you will spend exceedingly valuable time and resources later resolving issues that could have been avoided with proper planning. To schedule an appointment, contact us or call us at (512) 535-5008 for a free consultation.