Whether you’re an entrepreneur or rose to the top of your current company from an employee or executive position, purpose is essential for figuring out what happens when you’re no longer interested or able in playing this key leadership role.
People decide to step away from businesses as owners for an array of reasons. Others are forced to step out due to significant changes in their personal life, such as a disability. No matter how or when this decision arises, purpose should have been built into the process from the beginning of the succession planning stage.
Having worked with many business owners in the creation and implementation of their own succession plan, our Pasadena law firm has seen a number of common purposes emerge for the owner: health, family unity, and security. Expanding beyond these very personal aspects there are also business intentions and purposes for the company from the owner’s perspective.
Only an owner with a clear purpose has the right motivation to provide the necessary direction for a business succession plan. From ownership to management and leadership planning, succession planning takes all the individual and company-specific planning options and joins them together in one over-arching strategy.
What this looks like from one company to another will vary, but the purpose is the same: to give clarity and context to what options other owners, employees, and family members have when a company owner needs to step down or suddenly passes away.
If you’re ready to preserve the legacy of your role in the business and the company overall, our Pasadena estate planning firm is here to help.