Planning Your Family Owned Business
You've been running a family business for years.
Sure it was slow-going at first and there were times that you thought about throwing in the towel, but you stuck with it and now you have a business to be proud of and you get to be your own boss, making all the decisions.
Being your own boss, however, doesn't mean that you don't have to consider some of the same things that CEOs of major corporations do as well.
How are you going to grow the company? Who will succeed you when you're no longer in charge? What if you want to step down as the head of the company? These are a few of the questions that need to be answered.
Working with professionals with experience in family business planning is integral to ensuring that the life cycle of your business follows the trajectory that you want, even once you're not there anymore.
A big part of their job will be helping you answer the questions mentioned above.
How are you going to grow the business? This not only focuses on in what direction you want to take the company, but how you're going to pay for it.
If small business loans will be needed, a planning professional can help you pick the loans that are right for you and your company, or point you to better options to get the capital you need.
Who will succeed you? This may sound like an easy question to answer, but it often isn't.
You may assume that a family member will take over when you step aside, but what if they have in interest in running the company? What if something happens to you and no family member is in a position to take over the running of the company? Having a succession plan in place for all occurrences ensures that the company is in the right hands no matter what happens and that there's no confusion as to who should be in charge of the company when you're not running things.
Related to who will succeed you is what happens if you want to step down.
Do you want the business to stay in the family? Will you retain any influence in the company with some lessened day-to-day responsibilities, or will you quietly retire? What sort of retirement package will you get? Planning these things ahead of time will help make the transition smooth for all parties involved.
No matter what decisions you make, working with professionals that have experience in family business planning ensures that all of your options will be presented so that you can make the best decisions for you, your family, and for the business.
Sure it was slow-going at first and there were times that you thought about throwing in the towel, but you stuck with it and now you have a business to be proud of and you get to be your own boss, making all the decisions.
Being your own boss, however, doesn't mean that you don't have to consider some of the same things that CEOs of major corporations do as well.
How are you going to grow the company? Who will succeed you when you're no longer in charge? What if you want to step down as the head of the company? These are a few of the questions that need to be answered.
Working with professionals with experience in family business planning is integral to ensuring that the life cycle of your business follows the trajectory that you want, even once you're not there anymore.
A big part of their job will be helping you answer the questions mentioned above.
How are you going to grow the business? This not only focuses on in what direction you want to take the company, but how you're going to pay for it.
If small business loans will be needed, a planning professional can help you pick the loans that are right for you and your company, or point you to better options to get the capital you need.
Who will succeed you? This may sound like an easy question to answer, but it often isn't.
You may assume that a family member will take over when you step aside, but what if they have in interest in running the company? What if something happens to you and no family member is in a position to take over the running of the company? Having a succession plan in place for all occurrences ensures that the company is in the right hands no matter what happens and that there's no confusion as to who should be in charge of the company when you're not running things.
Related to who will succeed you is what happens if you want to step down.
Do you want the business to stay in the family? Will you retain any influence in the company with some lessened day-to-day responsibilities, or will you quietly retire? What sort of retirement package will you get? Planning these things ahead of time will help make the transition smooth for all parties involved.
No matter what decisions you make, working with professionals that have experience in family business planning ensures that all of your options will be presented so that you can make the best decisions for you, your family, and for the business.
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