These days, the majority of small business owners across Massachusetts are from the "Baby Boomer" generation, and if you are among them, you may be thinking about the next stage in your life and wondering how to prepare your business for the transition. At Kajko, Wiseman & Colasanti, LLP, we understand that setting your business up for continued success involves two important steps: creating a comprehensive business succession plan and selecting someone to be your successor.
When you own a business in Massachusetts, you may think you have plenty of time to choose a successor. However, it is important to have a succession plan in place before you need one. There are a few things to consider as you pick a successor and put a plan together.
When companies in Massachusetts are brainstorming ways to build their brand, extend their influence and move beyond their competitors, the focus often lies in strategies that can optimize resources to achieve ultimate success. However, an often unseen, but critical aspect of preparing for any organization's future is succession planning. Business leaders who prioritize the need to be training and preparing influential leaders within their organization can feel confident that the leadership of their company is in good hands if the current leaders retire or leave the business for some reason.
When one entrepreneur in Massachusetts decides to go into business with another entrepreneur and create a business partnership, the pair must think carefully about how they want to structure and run their business. In addition, their partnership agreement should clearly outline some potential exit strategies.
When preparing a business succession plan, you should keep in mind the various ways that passing your Massachusetts business from one set of owners to another may go wrong. For instance, you could plan to hand off your company to another set of owners, but may want to incorporate a way for your family members in the future to buy out the leadership regime if they wish. However, this may not be easy as you think.
Leaving your lifeblood in the hands of someone else is rarely easy, but the more time and energy you spend on your Massachusetts business succession plan, the smoother you can expect the process to go. At Kajko, Wiseman & Colasanti, LLP, we have a firm understanding of the elements commonly found in a strong business succession plan, and we have helped many clients facing similar circumstances find solutions that meet their unique needs.
A part of business succession planning is to think about who should take over your Massachusetts business in the event you pass away or are no longer able to run the company. It seems natural to consider your son or daughter to become your successor. For some business owners, however, the decision is not so clear cut. There are several questions to consider before you name your child as your business successor.
As the owner of a Massachusetts family business, you may find that your work offers many benefits. You may, too, have plans to leave your business in the hands of a trusted family member or close confidante once you are no longer able to run it yourself, but you may be unsure about what, exactly, the process of doing so entails. At Kajko, Weisman & Colasanti, LLP, we have a firm understanding of the important steps today's family business owners must take in order to craft an effective family business succession plan, and we have helped many clients navigate the process involved in doing so.
Business owners could transfer ownership of sole proprietorships in Massachusetts via a sale of the business assets. This type of sale, like almost any other, would require some planning to minimize tax burden. After some analysis, planners might discover that a conversion, such as incorporation, is advantageous from a financial perspective.
Although it may be difficult for Massachusetts business owners to plan ahead for business succession, experts say it is a good idea. Proprietors may find themselves resistant to the idea, believing that because retirement is several decades away, they can put off the inevitable.