There are millions of companies in the United States, both big and small, and every size in between. Many of these businesses – somewhere in the neighborhood of about four million – are owned by baby boomers. Baby boomers have been an integral part of our country’s economic development and growth over the last several decades and some might argue that they are what make the country go. These business owners should be given a lot of credit for their effort and for helping not only themselves but also their families and many other families all across the country. However, it’s possible that many of these baby boomer business owners, especially those who own small businesses, could be making a big mistake that a lot of companies in this position make.
Why a Succession Plan Is Important
That’s because the idea of a succession plan might be something they haven’t even considered. It’s also quite possible that many of these small business owners are aware that a long-term succession plan is a good idea, but it’s something they would rather not think about. However, pushing that thought out of sight and out of mind could be very costly when it comes time for you to retire. One of the biggest problems is that many small business owners have most of their assets wrapped up together with their businesses. Plus, while most people think they’ll live forever, the fact is baby boomers typically have about 17-20 years left to live after they turn 65. You can’t put off the inevitable forever. So what should owners of established small businesses do to get a solid succession plan in place?
Things to Consider
With unprecedented amounts of money at stake as these businesses change hands over the next 10-15 years, it’s imperative to get a solid succession plan in place as soon as possible. The fact is many company owners will either have to sell, close or restructure their doors. There are several options but no matter what method you choose, make sure you do something. You could sell your business to a person or to another company, or you could transition ownership to a family member. Another option is to turn over the company to existing employees or minority shareholders. You also need to consider the timing of your turnover and plan for both the company’s transition and for your personal retirement. There are many different ways to get ready but there is no question that now is the time to start.
Experienced Business Planning You Can Trust
At GROCO, we understand business management and planning and we can help you prepare for the inevitable. If you run a small, established business and you have been putting of a succession plan then you should contact us today. We’ll help you develop a strategy that puts both you and your company in a position to be successful now and in the future. You have worked a lifetime to build our business and see it become a success. Don’t let it all go to waste by not preparing for this certainty in life that might come sooner than you think. We have the business planning experience you need to get prepared. Call us today at 1-877-CPA-2006 for more information. Or, click here to contact us online. Let’s get your business succession plan in order now, before it’s too late.