Business Succession Planning Is Like Nominating Guardians For Minor Children
I often ask clients what would happen to their children if they did not return from their appointment. Then we talk about making sure that there is an emergency response plan in place to assure their children are taken care of in the event they do not return home because minor children are unable to care for themselves. They need a legal guardian.
Small businesses are often like minor children. They need constant care and attention from their owners. They need a legal guardian--the boss.
If you are a small business owner, consider that question? What would happen to my small business if I didn't return to the office today? What would happen to the value of the small business?
If you cannot answer that question, then you need business succession planning as part of your estate plan. Here is an article that talks a little bit about succession planning. It can prompt some questions. If passing your business and/or its value to the next generation is important, then talk with a qualified estate planning attorney. Statistically, you only have a three in ten shot at getting the business to the next generation.
Excellent post and analogy. Small business owners can ill-afford to leave succession planning undone. It wreaks havoc on the viability of the business long-term, and forces their loved ones to have to deal with complicated issues, often leading to disputes---at a time when they are grieving and unable to make sound business decisions.