Want to Leave Your Business to Your Family? Consider These Four Things
- Posted on: Jul 22 2021
Building a business takes years of hard work. That’s why it’s tough to imagine your business closing down when you retire or pass away. For that reason, many business owners wish to leave their businesses to their family and heirs. By providing their children with the business, they can help to ensure financial security for their loved ones. But, before you rush to create your succession plan, first consider these four things to best set everyone up for success.
1. Whether your family truly wants the business.
There’s a lot of pride that goes along with owning a business – and rightfully so. You’ve put in years of blood, sweat, and tears to grow it. Unfortunately, though, this can sometimes overshadow your heirs’ true feelings about it. That’s why the first thing you need to consider is whether your loved ones actually want the business. It’s best to know now so that you can always make plans accordingly.
2. Whether you have multiple children.
Sure, it would be great to split your business three ways for your three children, but it’s unlikely that ownership and business roles are ever truly split evenly. This is because everyone can’t do the exact same job at the same time – what would be the purpose? Therefore it’s important to set individual roles for each of your kids.
3. Whether your family “gets” the business.
While your children know what your business is about, it doesn’t mean that they understand what it takes to successfully run it. If your kids have spent a lot of time working in the store over the years it can be very helpful when it comes to taking over. However, if your kids haven’t, they may lack important skills. That’s why it’s best to work alongside of them and show them how things are done while you’re still running it.
4. Whether you wish to stay involved with the business.
Your business succession plan should certainly include what is to happen to your business after you pass away. However, it should also include how you wish to be (or not be) involved with the company after it goes to your heirs.
These four considerations can often open up a world of dialogue between you and your heirs. Since the answers can be so complicated though, it’s best to get started examining them as soon as possible. The sooner that you are able to consider these factors, the better your business succession plan can be.
The Law Offices of Brian L. Fox, APLC Help those in CA with their Business Succession Planning Needs
At the Law Offices of Brian L. Fox, APLC, we know how important it is to protect that for which you’ve worked so hard. We will help you to create the best succession plan in order to ensure the success and security of your loved ones. To learn more or to schedule a free consultation, contact us today!
Posted in: Business Law