What should I know about succession planning for a small business?

On Behalf of | Mar 17, 2020 | Business Succession Planning | 0 comments

If you own a small business in Illinois, then you likely put your everything into making sure it is a success. However, the time will come when you are no longer able to run the business. Do you have a plan in place for how to handle that, or do you expect the business to close if you cannot run it? If you want your business to live on, then you need to put a business succession plan in place.

SCORE explains a good business succession plan will ensure that if you are unable to run the business that someone else can easily step into your role. It will make it much easier to transfer the ownership and ensure that your business will not suffer if you die or otherwise become unable to run it.

Succession planning starts with an exit plan. You need to know who will step into your shoes. If you have a partner, then you need to set things up legally for an easy transition. If you want to pass it on to someone else, then you need to set things up for that person to take over. You may even want to sell your business. In that case, you also want to have all the files, accounts and information ready for whoever buys it.

Having a plan in place can help you prepare for unexpected events. It gives you the ability to secure the future for your heirs and can make it easier for you if you decide you want to retire. Once you have a plan in place, make sure that you review it often and update it as needed. This information is for education and is not legal advice.