The Time for Succession Planning Was Yesterday

Ever wonder why so many small businesses never survive the owner’s death? Entrepreneurs often get so involved in day-to-day management of their baby that they never contemplate what would happen if they were no longer around. Planning for succession is a critical strategy for business owners who want to leave not only a lasting legacy for their years of hard work, but also financial security for themselves and their loved ones.

The key, of course, is to begin the succession process well before retirement is contemplated. It takes time to determine if the kids have the capability or desire to take over the family business—or if a key employee shares the vision and ethics the founder inspired. And it most certainly takes time to install a funding strategy that can provide the resources necessary to compensate the owner adequately when he or she is ready to sell.