Business Succession Planning Tips for A Connecticut Family Business
If you own a family business, you may not have ever given much thought to succession planning. You may intend to pass the business down to your child, grandchild, niece or nephew, or another relative, so you assumed that succession planning was not necessary. While handing down a business to a loved one may seem like a straightforward process, there are countless issues that can arise that will hinder your company’s growth and continued success. The best way to ensure that the transition goes as smoothly as possible is to create a detailed succession plan well in advance of your successor taking over.
It Is Never Too Soon to Start
You may not be planning to retire or transfer ownership of your business for several years or more. However, it is never too soon to start building your succession plan. As your business evolves and grows, your succession plan can be modified accordingly. Keeping the eventual transition in mind helps ensure that you are currently making choices that will allow the business to flourish under new owners in the future. Including your family in the business succession planning process can help ensure that everyone is on the same page and prevent disputes in the future.
Be Realistic when Choosing a Successor
Few would disagree that owning your own business can be a challenging, time-consuming endeavor. Not everyone is cut out for the life of a business owner. When choosing a successor, it is important to prioritize what is best for the company over your own personal wishes. For example, you may have always hoped that your son would take your place when you retire. However, he has shown little interest in the business and has completely different career aspirations. In situations like this, you may need to reevaluate your succession goals and choose a successor who has the passion and dedication your business needs to thrive.
Train Your Successor Long Before the Transition
If you are able to do so, work directly with your intended successor to prepare him or her long before you want to transfer ownership. The more personalized guidance he or she can get, the more likely he or she is to avoid the pitfalls to which many new business owners fall victim. Most experts suggest training a successor for at least one year or more. Include your intended successor in the planning process and when meeting with professionals such as financial advisors, accountants, and business lawyers.
Contact a Fairfield County Business Succession Lawyer
Proper business succession planning helps ensure that your business will enjoy continued success for years to come. The Law Offices of Peter V. Lathouris, LLC is equipped to help you with all aspects of the succession planning process including business valuation, estate planning, renegotiation of contracts, and much more. Call our office today and schedule a free consultation to discuss your needs with our accomplished Stamford, CT business law attorneys.