A recent research study from the Family Business Institute finds that nearly 90% of business owners and entrepreneurs expect their company to pass to their family in the next five years. However, the statistics of how that happens in reality are quite different.
Only 33% of businesses will survive to transfer to the next generation, and an even smaller group of 10% to 15% will pass on to the third generation in a family. There are many different elements that can contribute to these low statistics, but failing to have a proper succession plan comes in at the top of the list.
You can create a successful exit plan for yourself by consulting directly with a business succession planning attorney and starting early. Designing and implementing a business succession plan takes time. This allows you to be proactive and to define who wants to be involved in the future of your business, and then use that information to craft a strong strategy. Effective communication is also critical.
A strategic plan is often needed to transfer businesses from one generation to the next and without appropriate planning and tapping of potential talent for the future of the company, it is unlikely that you will achieve this smooth transfer. Consulting with a business succession planning attorney is often the first step in protecting your interests and ensuring that you have considered all of the most important elements of your business succession planning strategy. Do not hesitate to contact a dedicated lawyer today to discuss what elements of your business succession plan may already have been created, and how to move forward with these next steps today.