If you are a Massachusetts small business owner and you want see your business outlive you, there are certain steps you can take to streamline the business succession process and ensure that your desires come to fruition. Though business succession planning can prove relatively complex, you may find that protecting your life’s work is well worth the time and effort. At Kajko, Weisman & Colasanti, LLP, we recognize how important crafting solid business succession plans can be, and we have helped many clients facing similar circumstances pursue solutions that fit their needs.
Per CNBC, one of the most common mistakes today’s small business owners make when it comes to succession planning involves waiting too long to start the process. The process itself is often timely, so many financial planners recommend starting the process a good 10 years before you plan to retire. This gives you a long time to figure out exactly who you want to leave in charge and make sure they are up to the task.
Another tip that can help you navigate the business succession planning process involves revisiting your succession plan periodically so that you can update it, if necessary. Maybe the employee you wanted to take the reins no longer works for your business, or maybe tax laws have changed since you created your succession plan, and you need to make modifications as a result. Revisiting your succession plan now and again allows you to make necessary changes with relative ease.
During your business succession planning, you may also want to consider your own insurance policies and retirement accounts. In some situations, business owners choose to purchase specific insurance policies that compensate them in the event that a critical party within the businesses passes away or becomes incapacitated. Doing so may give you options as far as buying out other employees who you did not name as your business successor. Find more about business succession on our web page.