Planning for the business after your death is often overlooked and while the idea for the succession maybe present at the back of your mind, often the financial details, claims and process during the succession are not clearly visualized.
According to a research by the National Federation of Independent Business, only a small portion (23%) of the small scale businesses has a detailed and robust business succession plan. The research also says that around 70% of the traditional businesses lack a succession plan and hence do not transit to the second generation.
It is extremely crucial to ensure that you prepare the business for the next succession well in advance. This ensures a hassle – free retirement and gives ample time for others you have chosen to take over the business.
- Apply for a life insurance plan immediately: A life insurance is a must have to protect your family and secure them of the finances and taxes in the event of your death. As a result of the security, the family can focus more about the business and figure out how to take it forward. It also enables them to take some important decisions for the same.
- Enroll in Medicare and Medigap insurance. Find the Best Medicare supplement plans HERE
- Learn more about Exit Planning: It is a complex decision to take. There are many options to exit a business. It can happen either through selling to a stranger or transferring the rights and assets to a family member. A business owner must realize the value of their asset, learn more about the options they have and sketch out a plan to move the business through the most appropriate option.
- Build the all – important team of advisors: Building a healthy and professional relationships with your tax advisors, bankers, financial advisors are necessary to increase your sphere of knowledge to alter the course of the business most appropriately.
Not every successful business owner is good with exit planning. Planning the exit choices and understanding the mechanics of each of them can let you choose the best one and execute it. Once the business reaches the right position after your death, it can continue to grow at a pace it had been growing before or even scale higher. Stand out from all the businesses out there by not only stressing on current goals but also securing your business without leaving any checkboxes un-ticked.