We do what we do in order to set you up for future financial success. We want to equip you with the financial skills and knowledge necessary to build personal wealth and pass on wisdom to future generations. A major part of that is business succession planning.
What is Business Succession Planning?
We would love to provide a one-size-fits-all business succession plan template for you. However, that doesn’t exist. This template will provide you with an idea of what is necessary throughout the process, but you’ll benefit most from sitting down with one of our advisors for a personal consultation.
Define your goals
Throughout the life of your business, you have set goals for growth, generosity, and success. Now is the time to create a collective vision for your business. Within the vision, decide how management should look going forward. Would you like everything to remain in-house? At what point would you like professional management to be brought in?
This is also the point at which it is necessary to choose a team of professional advisors. Collect a group of people that you trust and would like to see help your business grow in the future.
Establish a process for big decisions
Throughout your plan-making, it is important to write down expectations for your successor. Decision-making requirements should be well documented. Create a method for dispute resolution and communicate it well to your successors.
Create succession plan
To establish the succession plan that will allow your legacy to thrive, create and communicate a plan that sets your successors up for success. Identify which roles will be silent and/or inactive and which roles will be active. If the roles will need support, make it clear where to go for that.
Define an estate plan
This is the time to prepare for unforeseen or unfortunate events that could happen in the future. What will happen if the owner sells, dies, or is part of a divorce? Does the new owner have rights to pass the business along to anyone he or she chooses?
Once all legal documents are created and reviewed, create a buy/sell agreement. Create it to reflect the value of the business and minimize costs and taxes.
Form a transition plan
Transition can be immediate or gradual over any number of years. Establish a timeline of employment of the current owner and payment from the successor. This step will require each party to understand options and decide what is best for them.
Let Alpha Omega Wealth Build Your Legacy
The advisors at Alpha Omega Wealth would love to give you knowledge about building personal wealth through infinite banking. Schedule a free 45-minute consultation to get an idea of how we can help you create a business succession plan.