Getting into business is a big decision that require some careful planning if you want to be successful. At the same time, getting out of the business is another big decision that requires intelligent and informed succession planning.
Small business owners are obviously going to prioritize the present, particularly when they are first starting out. However, as the years pass and you find yourself on firm footing as your family starts to mature you should certainly start to think about an exit strategy.
Some people have family members who have been in the business throughout their lives. If you intend to leave the business to a child or multiple children you may make choices along the way that you would not make if you were going to sell the business or close it.
This is one of the reasons why it is a good idea to determine how you will be exiting early on. Your future intentions will play a role in your present decisions.
What if you’re going to leave the business in the hands of one child when you have multiple children? How do you balance out the inheritances?
This is a good question that people often have when they are thinking about business succession.
What about partners in small businesses? How do you arrange for the extraction of your share of the business after you pass away?
The best way to get the answers to these and other business succession questions is to sit down and discuss everything with a licensed estate planning attorney. Your attorney will gain an understanding of your intentions, answer all of your questions, and apprise you of your options.