Plain and Simple: Bright Business Insights Spring 2019 | Page 8

WHEN YOU PLAN FOR CHANGE, YOU PLAN FOR SUCCESS
Will Your Succession Plan Get You To Your Desired Destination?
From small, seemingly insignificant changes to life-altering decisions to give back to the community? Once you know what you want your
that impact the entire trajectory of existence – change, it is said, is “end” to be, the next step is to review the following choices and decide
the only constant in life. As a business owner, you understand the which type of succession plan will help you reach your goal.
importance of anticipating change and you’ve likely taken steps over
the years to establish plans to help minimize the effects of certain
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desire to take over the business once you’re gone? Have you
changes on your business’s bottom line. To that end, perhaps no
considered tapping them as your designated successor? What
exercise is more important to the future security of your business
would this transition look like? Those looking to transition the
than establishing a succession plan. Whether your departure from the
business to a family member will sometimes consider giving
company is expected or sudden, deciding on a succession plan early
the business as a gift. While this option may be the best way to
and taking the necessary steps to put your plan in place will ultimately
ensure your legacy carries on, it almost always means a smaller
satisfy your need (and the needs of your employees) for peace of mind.
payday for you, the seller.
Of course, what your succession plan looks like will ultimately depend
on what you hope to receive as a business owner. This article will look
at each option and weigh some of the pros and cons.
A Means To An End
If starting your business was a means to an end, what exactly does
that “end” look like? Did you open the business to get rich? Were you
looking to establish a name for yourself and are now simply interested
in keeping your legacy alive? Did you open your business as a way
Pass It On – Do you know someone with the ability and
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Keep It Fair – A buy-sell agreement is a legally binding
agreement between partners or multiple business owners that
outlines what will become of each owner’s portion of the
business in the event that something were to happen to them. For
example, upon your death, the buy-sell agreement might state that
the surviving owners can purchase your share of the business.
However, if no such agreement is in play at the time of death,
ownership will automatically transfer to your heirs. Setting up a