As a business owner, you take pride in the company and name you’ve built. When it comes time for your retirement, you need everything to go seamlessly. As you hand over financial control of the business you have put years of your life into, you need to know that the transition will happen smoothly. At Betsy Larson Law, we can make your succession smooth, ensuring your transfer of ownership goes off without a hitch. Follow these tips for a successful succession.
1. Identify Key Stakeholders
One of the first steps to successful succession planning is identifying and communication with key stakeholders. Create a list of anyone who has an interest in your succession. If you are passing down a family business, your family will be the first stakeholders to come to mind. You will need to make sure that the person you are passing the torch to is qualified and that everyone is on board with your succession or anticipate any problems that may arise if they are not. You should also consider your employees and their families. Your succession will affect them and could impact their livelihood.
Here are a few more stakeholders:
● Your community
2. Identify Strategic Goals, Objectives, and Mission
If you have not done so already, you will need to take the time to outline your company’s organizational mission statement. Lay out your company’s vision and objectives so that your successor and stakeholders understand the direction you want to see your company go in the future. Work with your successor to create strategic goals for the future. All of these elements will help formulate the foundation of your succession plan.
3. Develop a Successful Succession Plan
As you draft your succession plan, consider the tax repercussions of handing off your business to a successor rather than selling it. You will need to make arrangements for this and include them in your succession plan. Betsy Larson Law can walk you through taxation and legal issues as well as proper documentation. You will also need to develop a strategy for effective communication with stakeholders. Finally, you will need to make an arrangement for compensation where it is relevant. Revisit your succession plan regularly through the succession process to make changes whenever necessary.
Twin Cities Small Business Legal Services
When it’s time for your succession, you need someone you can trust to walk you through the process. That’s where our business law firm at Betsy Larson Law comes into play. We are here to guide you through the process so you don’t have to worry about a thing. At Betsy Larson Law, we have provided the Twin Cities with excellent legal counsel for more than 15 years. To start planning your succession, give us a call at 612-356-2870, or contact us online for more information.