How Do Business Owners Plan for Life-Changing Events?

If the last few years have taught us anything, it is that life is full of unexpected changes. When you own a business, planning for life-changing events must be a top priority. For many owners of small- and medium-sized businesses, their business is their most valuable asset – both financially and personally. Consequently, protecting the business’s future is essential. 

Having a detailed business succession plan in place is one of the best ways to protect a business in the event of an unexpected illness or death. Business succession plans can also help business owners plan for selling the business.

Business Succession Planning is an Essential, Often Overlooked Task

Business owners still recovering from the effects of the pandemic now must contend with supply chain issues, inflation, and countless other concerns. Understandably, succession planning often gets pushed to the side. One study showed that nearly 60 percent of small business owners do not have a succession plan in place. Another survey found that 30 percent of business owners have no estate plans at all.

The purpose of business succession planning is to make sure a business will be able to adapt to changes in leadership. Overlooking estate planning and business succession planning can lead to financial, legal, and personal complications.

If you are a business owner, it is important to ask yourself some difficult but necessary questions:

• Who will take over the business if I am seriously injured or fall ill?
• What will happen to the business upon my death?
• Have I discussed these crucial matters with my staff? What about my family?
• Who among my staff could rise to leadership positions in the future?
• If there are leadership changes, how can I minimize the negative impact of these changes on customers and employees?
• What is my business actually worth?

Most business owners know the importance of succession planning, but they are simply too overwhelmed with more immediate concerns. Unfortunately, many business owners put off succession planning until it is too late.

Contact our Naperville Business Succession Planning Lawyers

Business succession planning is an essential aspect of growing a successful business. Fortunately, business owners do not have to deal with these complex matters on their own. The Naperville business and estate planning attorneys at the Gierach Law Firm have helped business owners protect their businesses for over 30 years. We can evaluate your situation and help you develop a business succession plan that meets your unique needs.

Call our office at 630-228-9413 for a confidential consultation.

Sources:

Forbes

USA Today