If you own and operate a successful small business, you know how hard it is to simply maintain daily operations and turn a profit. In the daily grind of running your business, you may not have time to think about the future, but it is worthwhile to do so. It is prudent to not only protect yourself and your family with a solid estate plan, but also your Michigan small business as well.
Protecting your business can be as simple as outlining your future desires for the operation in event of your retirement, incapacitation or death. Business succession planning is important for every owner, no matter the size or type of small business you own.
Include the right things in your succession plan
A succession plan can ensure that you get to decide what happens to the business you worked so hard to build. It can protect your family’s interests in case you are in a state in which you cannot speak for yourself, sparing them from complex legal issues and complications regarding what to do with the family business. Planning early is important, and it is prudent to consider including the following in your succession plan:
- Naming your successor
- Outlining a training plan for the next owner or operator
- Putting plans in place for your retirement
- Putting a timeline in place for when you want to step away from your business
- Making plans to execute the steps outlined
You cannot control the future. You do not know if you will get sick, want to retire earlier than expected or come across other challenges that could impact your ability to effectively run your business.
For you, moving on after your business career could include selling your business interests, putting the business in a trust, transferring ownership or forming a partnership with a family member. Whatever your goals, you have the right to make sure that your estate plan includes considerations that allow you to meet your specific objectives.
The business of protecting your business
Having a plan in place can go a long way toward preventing disputes in the future. You have the right to decide what happens to your business, but it is prudent to ensure that your estate plan is up to date and tailored to your current needs.
You can’t control what is going to happen in the months and years ahead, but you can have peace of mind knowing that your business interests are secure and there are thoughtful plans in place.
