As a Delaware small business owner, you know how difficult it can be simply to run your business, keep up with your financial obligations and stay profitable. As much work and thought as you put into the initial stages of your business, you would be wise to do the same at the end of your business operations. Business succession planning is important for every entrepreneur, no matter the size or type of business you have.
When you start a business, you must draft a business plan and choose an entity. When it is time to close up shop or after you can no longer run it, you must decide whether you will sell or close and how that process will happen. By having this plan in place, you can ensure that there will not be unnecessary disputes over your small business after your passing.
What is a business succession plan?
As part of your estate plan, you would be wise to have a business succession plan in place. This will make things easier on your family in case you become incapacitated for any reason or you pass unexpectedly. It simply outlines what will happen to your business, no matter the circumstances. This plan can be whatever you need it to be, but it is prudent to include the following questions:
- When do you want to retire or step away from your business?
- Do you have a successor in mind for your business?
- What do you need to do to train and prepare your successor?
- What will happen to your business assets after you close?
- Will you sell, close or pass your business to another party?
Deciding what will happen years down the road can be complicated, but these are decisions and measures you do not have to make on your own. With experienced guidance and knowledgeable counsel, you can feel confident about the future of your business and your post-business future.
Planning today to avoid problems tomorrow
Without a succession plan, your family could face various complications if they have to make decisions on your behalf. If you are unavailable to express your wishes, this plan can help your family and beneficiaries adhere to your wishes and avoid legal disputes. Furthermore, it can help you have a measure of security regarding your goals and objectives, even years down the road.
If you are unsure of what should be in your plan or how to start this process, you may find it useful to first start with a complete evaluation of your case.