When you’re a business owner, you have many responsibilities. While many business owners are too busy running their business on a daily basis to think about succession planning, the importance increases with each passing day. What will happen to your business and employees when you’re no longer here? Having a well-drafted business succession plan is key to the ongoing success of your business. So, can you go at it alone? Well, you may be surprised to find that a business lawyer can help. Read on to learn more.
Why is Business Succession Planning Important?
There are a multitude of reasons why it’s important to draft a plan of action for who will be your successor and what their responsibilities will be once you’re gone. Drafting this plan early will help your business maintain its success well into the future. Here are some of our top reasons for implementing a well-constructed succession plan.
Taxes & Business Value
Business succession planning can help reduce taxes when a business owner passes away. Without a succession plan, the government can take much of the business’ value and leave little remaining for the family members or employees of the business. Business value can also decrease without an adequate succession plan in place.
Remain in Control
Developing a succession plan early can help you maintain control of your business’ future. By having a plan in place, your business has more chance for success during the transition. Oftentimes, many businesses begin to fail when a business owner’s health declines. Having a plan in place can prevent this from happening, as a successor can step in and run the business and make the crucial decisions. Another benefit of succession planning is being able to establish your legacy with the company through continued business or charitable donations. These options become severely limited the longer you wait to establish a succession plan.
How Can a Business Lawyer Help with Business Succession Planning?
Hiring a business lawyer can be very beneficial to the outcome of your business. Business lawyers help to establish a plan, including:
- Choosing a successor
- Developing a training plan for future employees
- Setting up deadlines and establishing a realistic timeline
- Implementing the plan
Business lawyers are there to guide you through the process, providing the necessary tools you will need to set you and your business up for a successful future.
How to Begin Your Business Succession Plan
You’ve worked hard in order for your business to thrive and you want that business to continue to flourish well into the future. The first step is realizing the importance of a succession plan, and if needed, employing the help of a professional. The business experts at Woodward, Pires & Lombardo, P.A. are ready to help you get started on your business succession plan. Call our Naples office at (239) 649-6555, our Marco Island office at (239) 394-5161 or visit www.wpl-legal.com for more information.