When do I need to form a business succession plan?

A:

Whether your business is big or small, well established or just launched, it is likely that the best time for you to begin a business succession planning is today—right now. Unfortunately, a large number of businesses fail after the owner steps down, retires, or suddenly cannot continue, especially small businesses and family businesses. Despite that fact, only a small minority of businesses has formal succession plans in place. 

A business succession plan means taking care of your family, your employees, and your business’ future success. It also means taking the time to think about your own eventual retirement and exit. 

Creating a succession plan means, in the worst-case scenario, that your business and employees will not collapse after a health emergency or death. In the best-case scenario, a succession plan means a smooth transition to the best possible leader that will result in many more years of success. 

Because you never know when you might need to step down or retire, it is never too early to form a succession plan. In addition, the earlier that you form a succession plan, the longer you will have to prepare your company, your future leaders, and your long-term development. Many business owners wish to retire within five to ten years—creating a plan for this retirement can ensure that you are able to step down on time and with a strategy in place.  

Are you ready to get started on your business succession plan? Our Austin business attorneys are here to help. To learn more, contact us today by calling or by filling out the electronic contact form on this page.