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Stewart Financial Services
- Protecting Your Financial Health
Business Succession Planning
Business Succession Planning is simply the process of determining how you are going to transfer your business ownership and transition out of a business management role, while maximizing your personal financial security. It is difficult enough planning for the foreseeable events in life, let alone the ones you do not expect. But a proper Business Succession Plan will address potential risks that could impact you and your business, even the ones you do not anticipate.
The average business owner or partner will probably spend more than 25% of his or her day planning for the short term: how much inventory to order, credit requirements, or how to increase sales.
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But statistics show that the same business owner or partner will spend no more than four hours per year planning for the eventual transfer of his or her business interests upon death, disability, or retirement, even though such interests might make up the major portion of his or her net worth.
When it is possible to structure your own Business Succession Plan, professional advice can be invaluable, and is essential if you anticipate that your business will have a market value based on something other than your personal skills and goodwill when you retire.
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The team members you choose to help plan your Business Succession Plan will depend upon the size and complexity of your business, its stage in the business life cycle, and your personal career stage.
Many business owners assemble a specialized succession team made up of family members, members of business management, and outside advisors for the specific purpose of developing an effective succession plan.
Contact Stewart Financial Services for further information regarding the development of your Business Succession Plan. |
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