It takes years of dedicated effort to build a successful Delaware business. You understand the daily commitment required to run a small business of any kind, but it is beneficial to think beyond your immediate goals and consider your future needs as well.
One of the smartest moves you can make as a business owner is to secure your future interests through a business succession plan. This is a part of your estate plan, and drafting these documents can allow you to have more control over what will happen to your small business operations in the future. If you do not have this as part of your estate plan, you would be wise to include them.
Planning for the future of your company
When you started your company, it is likely that your sole goal was survival — your goal was just to keep the doors open and eventually turn a profit. Now that your business is established, you may be thinking of steps you can take farther down the road, such as retirement, selling the company or deciding whom you may want to take over in the future.
Your business succession plan can be just as unique as your company is. You have the right to draft these plans to suit your unique needs and objectives for the long-term interests of your company. A strong and enforceable business succession plan includes the following:
- Outlining your retirement plans: If you plan to retire or step away from your company in the future, you need to outline your retirement plans, including a potential timeline for you to step away.
- Naming your successor: If you wish to pass your company to an employee, family member or other individual, you may want to be specific with your plans for this person.
- Planning for your successor’s training: It is not easy running a business, and there are things about your company that you only know. You would be wise to outline these things and to properly train your successor to run your company.
As part of your succession plan, you would be wise to also address what you want to happen to your company in case you experience a disability or are physically or mentally unable to continue running your company. The simple process of drafting succession plans can help you face the future with confidence and security.
A measure of control over the future
You cannot predict what will happen in the future, but you can have a measure of control over what will happen with a strong and updated estate plan. If you need to draft a business succession plan, you would be wise to move forward with this as quickly as possible to secure your interests.