Established Small Businesses Need to Have a Succession Plan
Established Small Businesses Need to Have a Succession Plan
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.
—————————————————————————————————————————————————————————————————————
We hope you found this article about “Established Small Businesses Need to Have a Succession Plan” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Seven Signs Your Noncompliance Will Be Considered Willful
Seven Signs Your Noncompliance Will Be Considered Willful There are many ways taxpayers can get the attention of the IRS. Although a lot of people make innocent mistakes when they file their tax returns, there are others who willfully look for ways to skip out on the taxes they owe. The IRS does treat those…
Make Sure Your Heirs Inherit What You Want
Make Sure Your Heirs Inherit What You Want. The saying goes that their only two things that are certain in life: death and taxes. While people can generate endless amounts of money when they’re alive, they can’t live forever and they can’t take that wealth with them when they die. However, they can have a…
Will Taxing the Rich Even More Improve Inequality?
Will Taxing the Rich Even More Improve Inequality? It’s been the cry of democratic lawmakers and many of the less fortunate for years: “We need to tax the wealthy even more.” “The rich have to pay their fair share of taxes, too.” The problem is the rich already pay a huge portion of the country’s…
It Pays to Be Rich for These Five Tax Breaks
It Pays to Be Rich for These Five Tax Breaks Although it’s true that the ultra-wealthy are heavily taxed, and in many cases unfairly, there are also some tax break advantages that favor the upper class more than those in the middle. Let’s take a look at some of these breaks. Most common and first…