There is no question that as a small business owner you have persevered and worked hard, dedicating your life to the success of your company. That being said, don’t you think a company you put all of your energies into, deserves the chance at having a happy ending? Have you considered the impact your death, disability, retirement, or even divorce could have on your small business ?
If you are the owner of a small business it is time for you to stop thinking of only what is happening now, and start focusing on what could happen in the future. Therefore, you need to put your priorities into perspective by protecting yourself and your business with a succession plan. A business succession plan is what you need to ensure that your business has a happy ending by remaining secure, regardless of what may happen in the future.
In particular, a succession plan allows your business the chance to be able to stand up to any challenges that may occur along the way. For instance, certain setbacks that you might experience may be entirely beyond your control such as divorce, disability, departure and death. But with a business succession plan you have the chance, as a small business owner, to ensure that regardless of what may happen to you, your business will be protected.
The following are a few aspects you should to take into consideration when creating a business succession plan for you small business:
How to Begin the Succession Planning - Since you need to make choices before you can really begin achieving your succession planning goal, you must first think about your long term business objectives and ask yourself important questions such as –
• Will I sell my small business?
• Should I set up a plan that allows me to transfer my business to one of my business associates or a family member?
• Does my business have public potential?
Of course, business succession planning begins with much more than simply deciding who you will be giving your business to in the event that you can no longer run your company, or wish to sell it. Additionally, succession planning is about keeping your small business afloat and successful to ensure that your absence will not devastate your company. Therefore, in order to maintain future control of your business, you will need to begin your succession planning by making choices that will concern things such as:
• ownership objectives
• asset protection planning
• taxation and transaction planning
• estate planning
You will want to keep in mind, however, that due to the fact that every action you take with succession planning will result in a reaction, you will require the assistance of experienced experts when developing your plan.
Understand the Dollars and “Sense” of Business Succession Planning – Like any type of business preparation, your business succession plan needs to be orderly and handled carefully if you don’t want to suffer the consequences of financial losses – or worse – the loss of your small business. That being the case, you need to know exactly what you are dealing with, and how you can achieve the most of your planning.
The one mistake you will not want to make is to overlook your business finances. You can help keep your business secure by properly using the following, and more, in your succession planning before problems occur:
• Life insurance
• Disability insurance
• Annuities
Furthermore, you will find that with an orderly succession plan, you will be avoiding the possibility of your business having to be sold to pay off the estate tax, in the event of yours or (if you have one) your partner’s death. It is no secret that estate taxes can claim up to 55% of an estate that is taxable, which is no mystery why so many businesses fall into debt, become bankrupt, or are sold due to the death of the owner or partner.
In addition, another aspect that needs to be considered is that clients are most likely to do business with other businesses after the owner or partner is deceased. However with the proper succession plan, your business should be able to maintain any regular clients - or if not - it will be better equipped to survive the possible drop in assets if a slow period should follow.
Know How to Write Your Happy Ending – Remember, when all is said and done, the outcome of your succession plan depends entirely on the choices you make regarding the future of your small business. It is imperative that you take the time to make the best choices that will allow you to implement a succession plan, which keeps you in control of the outcome that involves the transfer of your company. By knowing how to ensure the prosperity of your business future with a succession plan, is how you will write your happy ending.
Robert Moment is an innovative small business coach, speaker and author. Robert specializes in teaching entrepreneurs how to start successful and profitable small businesses that grow. Visit http://www.howtostartyoursmallbusiness.com and take the FREE Small Business Coaching 7 day e-course titled, “Turn Passion into Profit: Small Business Startup”.
Will Your Small Business have a Happy Ending - To learn more about this author, visit Robert Moment's Website.
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Leanne Hoagland Smith
Are your sales where you want them to be? Will you be one of the few who achieves sales success or one of the many who have failed to change? So what are you doing to change those results? Let’s be honest, with companies moving globally and at lightening speeds, the traditional business solutions are outdated and dead. My approach moves your business out of its comfort zone and secures your competitive advantage now. If you are seeking to increase sales, build customer loyalty, create a culture of great attitudes or just achieve some sleep filled nights, then we should talk because my clients have experienced exactly those types of results. Learn more about customer loyalty at http://www.processspecialist.com/customer-loyalty.htm Give me a call at 219.759.5601 for a free strategy session. P.S. If you are seeking a motivational speaker, sales trainer or small business expert that will leave your audience smiling and remembering, please feel free to contact me at 219.759.5601. - Visit Leanne Hoagland Smith's Website |
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Robert Moment
(Visit Robert's Website)
Robert Moment is a sought-after innovative
small business and marketing coach and the
author of Invisible Profits: The Power of
Exceptional Customer Service and It Only
Takes a Moment to Score. Here’s what
Millionaire business mastermind,
bestselling author , speaker and
consultant Brian Tracy(www.briantracy
.com) said about Robert’s book , It
Only Takes a Moment to Score , “Your
ability to quickly build trust and rapport
with customers is the key to your success
, and the SCORE (Sincerity, Commitment,
Openness , Reliability, Execution) System
shows you how to do it quickly”.
Robert Moment was one of the leading small
business experts chosen to write a chapter
in the bestselling book , Streetwise Small
Business Book of List by author Gene
Marks. Robert has interviewed on
Entrepreneur Magazine Radio a number of
times and other radio shows .
As a small business and marketing coach,
speaker and author, Mr. Moment’s greatest
actual talent is seeing hidden
possibilities overlooked assets and
underperforming activities and resources –
which no one else recognizes.
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