Who’s Running the Store? Three Common Succession-Planning Mistakes
You’ve worked hard to build your business and have nursed its continued growth since you first opened its doors. After years of toiling, you’re finally at the point where you’d like to step back, take a little time for yourself and enjoy the fruits of your hard work. It’s understandable that you want to make sure the business will continue to run with the same efficiency, integrity and vision as it did when you were at the helm.
That’s where succession planning comes into play. Despite your best efforts, it can be extremely difficult to initiate a succession plan with which you’re truly comfortable. Here are three common mistakes that business owners make when they are considering stepping aside.
More Is Lost by Indecision… Think back to the day you opened your doors. It was a means to support your family and fulfill your own professional goals. But you knew that some day, sooner or later, you were going to have to hand over the reins to your successor. As that day drawers closer, you need to begin to consider your options. Is there someone already in front of you who may be perfect for the job? Or, do you need to begin a search? Procrastination is not your friend at this point. The sooner you begin to identify your potential successor, the sooner you can put the legal strategy in place to protect your interests and investment.
You Can’t Want It for Them If you’re waiting for your disinterested son or daughter to wake up, roll up their sleeves and get involved with your company, you may be betting on the wrong horse. Most of us want to leave a legacy, particularly one that will ensure that children are well-provided for, but sometimes it’s not in the cards. It’s helpful to have frequent and direct conversations with your children or siblings regarding their plans for the future and their desire to follow in your footsteps.
What You Don’t Know Can Hurt You (And Destroy Your Business) One of the smartest succession-planning decisions you can make is to proactively enlist the help of an attorney who understands NJ business law. There is a variety of tax implications and other legal issues with which you may not be familiar. These may all directly affect the transfer-of-ownership process of your company’s assets. A knowledgeable legal professional can help make sure the transition goes smoothly – and it’s never too soon to start.
The attorneys at Posternock Apell, PC can help you put a cohesive and easily executable succession plan in place to ensure your legacy is honored and your business falls into the right hands. Call us today to start planning.