You may want to discuss it with your business adviser, accountant or lawyer.
To write a succession plan, the first step is to identify the ideal successor to take over the business, then determine the best selling arrangement.
This usually involves a buy-sell agreement, secured with a life insurance policy or loan.
Early planning also helps you to maximise the value of your business.
Make sure your succession plan is realistic and achievable.
In other words, a well-crafted succession plan aims to benefit everybody— the departing owner, their family, the business and the successor.
Here are the 5 most common types of small business succession plans in detail: If you founded your business with a partner, you may be considering your co-owner(s) as a potential successor.
There are 5 common ways to transfer ownership of your business: This guide covers each of these succession plan types in greater detail.
Succession plans are commonly associated with retirement, although they also serve an important function earlier in the business lifespan: If anything unexpected happens to you or a co-owner, a succession plan can help reduce headaches, drama and monetary loss as your business grapples with a transition.
You can start succession planning years ahead of time; having a plan can be useful if there is an unexpected event, such as illness or death.
Without a plan the future of your business can be at stake.