As a business owner, you have to be prepared for the future. What happens if you are no longer able to run your business? What happens when you retire? What will happen to your business when you die?
Truth is – anything can happen at any moment. Many times, without warning. Are you prepared?
Business succession planning in Virginia is vitally important for business owners to secure the life of their company no matter what they may encounter down the road.
What is a Business Succession Plan?
Business succession planning is about strategically putting a plan in place to keep things up and running with forward progression when you are no longer able to fill the role.
Ownership and management roles will often transfer to someone else in events such as disability, retirement, and death. These things cannot always be marked on a calendar, so a business succession plan will safeguard your company when they occur.
Business succession planning also includes preparing for financial issues and how to address them. Taking the time to get all of this in order now can put those you care for – including your business itself – in a better position when you have moved on.
The Importance of Business Succession Planning
Perhaps you have talked things over with a business partner, manager, spouse, or the like. Maybe you have discussed what it is you would like to happen with the business when you are no longer there. Unfortunately, without anything formally drawn up, some major roadblocks can occur.
Having a business succession plan ready to go can clear up any confusion and provide you with:
The ability to choose who you want the change to include – and how you want it carried out
A smooth transition of ownership and management
Security for current employees
For you, having a plan in place gives you peace of mind that everything will be handled just as you intended it to be.
How to Develop a Business Succession Plan
Now that you know the importance of having a succession plan for your business, you may be wondering how you create one. While you will want to hire a Virginia attorney who specializes in business succession planning, there are a few things to consider when it comes time to develop a plan, including:
Determining the goal of what you want to accomplish with your plan
Examine all aspects of your current work situation, as well as who is involved and in what capacity on your organizational chart. What will happen if your ideal change goes into effect?
Decide who you will want to be your successor. Who will take over the ownership of the company? How will they pay for it? Who will handle its management?
When doing the formal planning, be sure to consider everything that will need to take place, including changes in finances and salaries, training, insurance coverage, etc. Leaving anything unaddressed could create challenges when implementing the plan.
If you have estate planning documents, you will want to make sure that your wishes stated within those personal documents regarding the future of your business reflect the same as your business succession plan.
Business Succession Planning in Virginia
Northern Virginia Trusts & Estates provides business succession planning you can have confidence in. We understand the importance of having a strategy to protect your business – and your legacy – in the future.
To learn more about business succession planning, schedule a consultation with our experienced attorneys. Contact us today at (703) 938-3510.