Planning for the future is essential when operating a business in California. Life can come with unexpected events that must be prepared for ahead of time. Estate planning is an excellent way to accomplish this task when you want to ensure your assets go to your chosen beneficiaries. If you own a business, creating a solid estate plan becomes even more essential. Including a succession plan with a written set of instructions can help make it much smoother to continue operations if you suddenly die.
Creating a business succession plan can be critical
When your business relies on your help to operate smoothly, it can be critical to create a succession plan outlining the steps to take if you become unavailable. Creating this guide can be invaluable in a crisis when you aren’t there to run operations. It should outline how your business will run and give access to secure information associated with your important contacts, such as suppliers, professional advisors, customers and your banker.
Starting early is best
Waiting too long to create a succession plan can jeopardize your business during a crisis. Making plans early and revisiting them periodically can help ensure a smooth transition occurs if you’re unable to look over operations. Starting the process requires you to list individuals who are best qualified to take your place. If you have partners, you may also want to consider buying them out or having them buy out your interest.
Get your succession plan in writing
Creating your business succession plan and getting it in writing helps ensure it’s ready to be used if you’re unavailable to oversee operations. Over time, you can always change your mind and make changes. The process is always ongoing, which helps ensure it meets your goals and requirements.
A business succession plan can be helpful if you can’t oversee operations. Creating one early before it’s needed can be vital and keep your business thriving.
