When you pass away, it may not just affect the people you love. In some cases, it can have a profound effect on your business. This is especially true if you are central to your business. According to Entrepreneur, a business that is dependent on its owner and cannot survive without the owner is called an owner-dependent business. If you have an owner-dependent business, you must prepare for what happens with it when you die.
You may not intend to retire for many more years, but life can be unpredictable for Illinois business owners. According to FindLaw, a business succession plan can mean the difference between continued success or tragic failure for your company in the event of your unexpected death or incapacitation. If your business is family operated, the lack of a succession plan may spark a feud, and both your business and your family may suffer as a result.
As an owner of an Illinois small business, one of your top concerns should be the survival of your company if a partner in your company decides to leave, or if the partner dies, or any number of events occur that make it impossible for the partner to retain ownership in the company. If there is no exit strategy in place, the value of your company could be disrupted or you may end up losing the company completely. This is where buyout agreements come in.
It may seem counterintuitive to plan for business succession when a company is just getting off the ground, but experts recommend it. So when busy Illinois entrepreneurs start setting things in order for their opening days, thinking through who will take over the business some day is just as important as planning who will get it started.