Whether you plan to float on that boat for real or float in that big old boat in the sky, something that every business owner and organizational leader must consider is that there will come a day that you vacate your seat or the business.
People often think about what their life will be like on the day after, but what about the businesses and employees they leave behind? What will things look like for them?
Enter succession planning. Within an organization, succession planning means identifying and preparing candidates to take over leadership positions at every level.
But for privately owned and small business, succession planning means planning for what becomes of the business when the owner(s) exit.
Stepping Away from Ownership
When the owner decides it’s time to step away, there are several options, including but not necessarily limited to:
- Shut down the business
- Sell the business
- Gift the business to family
- Gift the business to employees
- Gift the business to charitable or non-profit organization
Know the Advantages and Ramifications
There are advantages and ramifications to each option so the best advice I can give on the topic is this:
- Have an organizational succession plan
- Seek the guidance of your accountant and your attorney, then…
- Develop a business succession plan
- Go back to your attorney and document it from an indisputable legal perspective, just in case something bad happens to you before you’re ready to float on a boat…
- Then…when the time is right…go float on that boat
Listen to the Podcast
On the Business is ART podcast dated November 1, 2016 and entitled “Should I Stay or Should I Go?” we talked about business ownership succession planning. You can listen to it in its entirety by clicking here.