Succession Planning For Small Business

Taking these five steps now will save money and time and will help assure the continued success of your business.For more great small business articles such as The Top 25 Home-Based Business Ideas and Keeping Your Business Ideas Confidential, visit All and All Business Experts.A buy-sell agreement is a legally binding agreement between partners or co-owners outlining what will happen if an owner dies, is forced or chooses to leave.

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You need to help them understand that it takes years, and explain why it needs to be a priority.

Point out the risks of procrastinating – a more stressful exit, a lower price, and a messier handover.

If you decide to leave your business to a family member consider the legal obligations, as well as the impact on family relationships.

Consider involving a lawyer or business adviser in discussions with family members to avoid disputes relating to inheritance, ownership or management.

It can seem overwhelming to some business owners, so break it up into stages: Succession planning requires a wide range of skills.

More than any single professional – or an organization – can provide.

Consider the role family businesses play in job creation: family companies are responsible for 60 percent of the jobs in America and nearly 80 percent of new jobs created.

But according to a recent PWC survey, only 52 percent of them expect that members of the next generation can do it on their own.

Family businesses account for a staggering 50 percent of the gross domestic product of the U.

S., and it is not just in small storefronts or website businesses: 35 percent of Fortune 500 companies are private or public companies that are controlled by families.