Perhaps the only job more difficult than building your own business is passing it on to the next generation. Succession planning is a complex blend of hopes, dreams, fears, money, family and legalities. The business acumen, instincts and hard work that allowed you to create personal wealth and recognition in the first place must now be directed toward your ultimate challenge: transferring ownership and stepping aside.

Whatever your circumstances are today, they will, most certainly, change and now is your time to provide the input and leadership necessary to transition your business to the next generation of leaders and managers. It’s important to think of succession planning less as a diminishment of your on-going contributions, and more as an opportunity to create financial security for your family and a legacy for you.

Why Should I Plan?
A well designed succession
plan will:

• provide financial security for you and your family;
• ensure the continuation of your business legacy – for your employees, customers, vendors and your community;
• create long-term career opportunities for family members;
• clarify your intentions;
• minimize tax liability; and
• map the next chapter of your career.

A family member’s potential contribution to the
business should be the most important consideration:
ask not what your family business can do for you,
but what you can do for your family business.

1. Your financial security
Your business is a complex asset to value and manage. Much of your net worth is probably tied up in the business and you will eventually need to convert its value into cash and make it work for you in retirement. These complicated financial plans take time – usually years – to be designed, funded and implemented.
The benefits of starting sooner rather than later can add considerable value to your nest egg. First, you want to maximize your company’s value to maximize your payout. You may need to drive growth, deal with unexpected business losses, or attract and develop key people. Your business will take care of you, if you take care of it, by setting it up to succeed when you leave.

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