When you started your Texas business, you worked hard to make it successful. It likely took months or even years of effort to reach a point where you were making a profit, and now that you have accomplished this goal, it is time to think about what’s next. One important consideration is what will happen to your company in the future after you retire or in the event of your death. It may be a difficult subject, but the long-term benefit and longevity of your company is important.
As a business owner, you will benefit from thinking beyond your short-term goals. Having a business succession plan in place can provide you with the benefit of knowing that you had the final say over certain long-term issues. In your plan, you can name a successor for your company, decide how you want to transition certain functions of your business and much more. This is an important part of your estate plan as the founder or owner of a small business.
The details of a business succession plan
Passing along a family business can be a difficult endeavor. You may want your child to take over the business someday, or you may want a current employee to step into your role. Whatever your goals may be, you can create a plan that reflects your objectives and needs. As you create your business succession plan, you may want to consider the following issues:
- Not only do you want to clearly transfer operational power of your business, but you also will need to transfer ownership of and authority over specific business assets.
- Make decisions in your plan that will uphold and protect the reputation of your business. This is one of the most important assets your company owns.
- Recognize that your successor may have different goals, different skills and different challenges than you had, and make plans that reflect this possibility.
- Talk about your plans, and ensure that everyone understands your wishes. This could reduce complications in the future.
Like other aspects of your estate plan, your business succession plan can be customized to your specific needs and wishes. It may be helpful to speak with a knowledgeable professional regarding the ideal way to preserve the future of your company while accomplishing your specific goals. With the right plans in place, you can face the unknown with confidence.