Let’s talk this week about succession planning for your business. It’s one of the most important things you can do to protect your business. And guess what? YOU are one of the biggest vulnerabilities for your business.
We all know that we’re all subject to death and taxes, right? And guess what? We’re all going to leave the leadership of our business at some point in time, it’s just going to happen. You’re either going to sell it or you’re going to die. And in either case, you need to be ready to deal with that. Because, if you don’t deal with it up front, it’s going to deal with you. You know you need to have your estate plan in place, so let’s take the idea of you dying unexpectedly. Somebody must be there to run the business and you need to have a plan in place within the business for who would run it. Selling your business is another issue. That’s another form of succession planning and that can require a lot of advanced planning.
We were recently working with a company who were building their company to scale. Meanwhile, they got an offer to purchase the company. We had to explain to them that maybe now is not the best time because they were investing in the company. They weren’t maximizing the profit out of the company with these investments happening. And so, the offer wasn’t what they were hoping for because the profit margins didn’t support the valuation that they wanted. Succession planning is one of the main things you need to be thinking about with your business, because you are going to be leaving at some point in time, and you may leave sooner than you planned. We’re happy to help you fill this gap. Reach out, give us a call, or visit davisbusinesslaw.com.
The content on this page has been reviewed and approved by Matthew Davis: CEO of Davis Business Law.