Business Owners - Don't Fail to Plan
Category: Business Law and Planning
It is a truism that "Business owners often feel that they -- and the business -- will always be around. But without some thoughtful planning about succession, it's common that businesses wither when the owner passes away or leaves."
In Keep Business Alive With Succession Plan from the Small Talk Column of WSJ Online, the author highlights "four steps to making sure your business lives beyond you." These are common-sense concepts to spur you to action. Some key points to consider:
* You need to have a plan as to what will happen to your business if you get hit by a bus.
* Your plan needs to be in writing
* Know who your successors are let them know so you can groom them to succeed
* Be able to finance your succession, whether through a buy-sell agreement, life insurance, etc.
Another truism all business owners should consider: Nobody plans to fail, just fails to plan.
Labels: Business Law and Planning