Small businesses work just as hard if not harder than large businesses to build and hold onto their success and assets.
Thus, many small business owners want to do everything they can to ensure that their successful business can get passed on to future generations without any trouble.
No minimum size needed
Harvard Business Review discusses the necessity for business succession plans. In essence, there is no “minimum size” for a business in order for it to qualify for a succession plan. Anyone who owns a business of any size can create a succession plan for it.
First and foremost, it is important for business owners to prepare their succession plan. This includes the owner updating their estate plan, and deciding how they want to transfer the business after their death. Some people, for example, may want to sell the business or transfer it to a high ranking employee. Many wish to pass it on to family members, though.
Choosing a successor
When selecting a business successor, the owner must choose someone with a desire and passion for running the business. They should not simply pick the person they think best suits running a business and spring their decision on that person.
The owner and successor also need to share the same opinions on the business’ core values and principles. Though it is not necessary for these people to agree on the future of the business, this can aid in a frictionless transfer.
Any business owner of any sized business can take these steps to secure the future of their business.