For many Minnesota business owners, their company becomes their life's work. They work so hard to ensure their business grows and becomes successful that the fail to consider one big thing: what will happen to their company when they pass away or are unable to work anymore? Here are a few reasons why it is so important to have a business succession plan in place:
- Many family businesses have so much trouble dealing with the transition that they end up being sold to pay taxes or because no one in the family wants to take over.
- Stakeholders in the business might be plentiful and in constant conflict.
- It may be understood that a certain person will take over, but does she have the proper training? It is important to think ahead about the kind of training and education she should complete now so that she will be completely ready for a smooth leadership transition in the future.
- If you have multiple family members with an interest in running the company, it is best to address the succession question while you are still of sound health. If you are unable to make the decision yourself, it could cause a lot of trouble and fighting within a family later on.
Maybe you don't want your business to continue on in your absence. That’s your choice, but you still need to plan ahead and make that decision clear. People might assume that you wanted the business to continue on, rather than closing and dividing assets. No one will really know what you want unless you put it in writing ahead of time.
It may seem a bit morbid, but just as you would plan for your personal estate, you must also plan for the future of your business. Developing a proper business succession plan with the aid of a Minneapolis business lawyer is the key to securing your legacy. Call attorney Chuck Roulet at 888-719-5589 to schedule a free consultation and learn how he can help you guide the future of your business even after you end day-to-day management.