When you are looking forward to the future of your business and ultimately exiting that business in order to accomplish other goals, such as retiring or if you’ve simply gotten bored with the process itself, you need to have these planning tips in the back of your mind.
Ultimately, you should approach business succession planning at the time that you launched your business as this can be one of the most effective ways to ensure that you have carefully considered all of your unique needs over the course of the business. You may already have foundational documents such as key man policies and a business succession plan in place. Buy/sell agreements and other documents need to be reviewed carefully with the help of your attorney to clarify your responsibilities already on the books.
There are five key planning tips you need to keep at the back of your mind as you approach the sale of your business and figuring out whether now is the right time. These include:
- Â Articulating your plans for the money you receive, such as how it will affect your future.
- Â Thinking about college funding and charitable giving opportunities that can minimize exposure to risk in the future.
- Â Looking at required cash reserves and estimated taxes.
- Â Looking at key man insurance and personal liability policies.
- Â Figuring out how your estate plan connects with the sale of your business or any business succession plan.
Sitting down with an experienced business succession planning attorney can open your eyes to the most effective way to chart a path towards retiring or exiting the business.
