If you’re a small business owner in New York, your business needs an effective business succession plan. A New York business succession planning attorney can assist you in establishing a succession plan to meet your needs.
Plans for business succession provide an owner’s directions for changing the ownership of his or her business. If you are a business owner in the New York City area, don’t wait for retirement to prepare a succession plan. No one can know what tomorrow will bring.
In fact, it’s best to prepare a succession plan for your business as soon and as early as possible. If the worst happens unexpectedly, your plan will reduce confusion, offer directions, and may even keep the business thriving.
What Is a Business Succession Plan?
What is a business succession plan? Why is it so essential? When should you have a business succession plan in place? What benefits can a business succession plan provide? If you will keep reading, you will learn the answers that every New York business owner should know.
As your business expands, grows more complicated, and involves a growing number of people, you need a clear, precise, well-crafted business succession plan. A proper succession plan advances everyone’s interests–you, your successor(s), and your clients and employees as well.
An effective succession plan either designates a new business owner or owners, or else it provides instructions for selling your business–to another owner, an employee or group of employees, or a third party–when the time arrives.
If you’re selling the business or you intend to sell the business eventually, let a New York business attorney counsel you and guide you step-by-step through the process of establishing a business succession plan.
What Do Business Succession Plans Achieve?
If you don’t intend to sell the business, you may choose one or more persons to follow you as the owner (or owners) of the business. Business succession planning can provide for loved ones if there comes a time when you can’t, but naming someone to follow you may be complicated.
For example, transferring the business to an heir usually means additional taxes. However, a New York business succession planning attorney can help you find ways to reduce that tax burden.
What Makes a Business Succession Plan Effective?
The three keys to creating an effective business succession plan are:
1. Establishing a timeline: The plan can take effect on a certain date when you become incapacitated or upon your death.
2. Naming your successor or successors in the plan, or if you intend to sell, spelling out precisely how a new owner will purchase the business.
3. Valuating the business: If you’re selling your business, sell it for what it’s worth, and until then, have your valuation routinely updated.
When Should You Contact a Business Succession Planning Attorney?
Now is not too soon to prepare your business succession plan. In the New York City area, to discuss your options for business succession planning, or to get started now, contact a business attorney at 347-464-2317 to arrange your first succession planning consultation.