There are a lot of things involved when you own a business, keeping it running is only part of the pie. Business owners will need to extend their passion, stress, perseverance, and personal sacrifice on top of everything else on their plate. With that, you’re expected to invest a considerable amount of yourself to keep your business operating, which is why most owners have a substantial portion of themselves tied up to their companies.
When you speak to business owners, CEOs, and company founders, most of them will say that their business is their most valuable asset. For this reason, it may be challenging to share their concerns regarding retirement and moving forward, as well as who’ll succeed them. This is why most business leaders opt for legal assistance from will and estate lawyers to guide them through succession planning.
Unfortunately, there are numerous myths surrounding succession planning, making business owners and leaders put planning aside. Doing this can ultimately increase legal issues in the future, especially when the unfortunate happens. In this article, we’ll list down the common myths surrounding succession planning so you can throw them out the window.
Myth #1: “Succession Planning Is Focused on Retirement, and I’m Not Ready to Retire and Hand-Off My Business Just Yet”
One of the biggest myths business owners believe is that succession planning is solely focused on retirement and pushing the owner to retire immediately.
Think of succession planning as a way to develop an effective strategy that will help your business continue to grow and operate once you step down the mantle. Although retirement is part of the plan, the strategy’s most important parts include a development timeline, key successors and their roles, and how to finance the transition.
Because there is a lot to consider in succession planning, you must get legal advice and guidance from will and estate lawyers to help you strategise this vital transition.
Myth #2: “Just Sell Your Company, It’s Much Easier”
As mentioned earlier, succession planning is a gruelling task. That’s why inexperienced people would suggest just selling the company instead of strategising a transition.
If you sell your company to a peer or competitor, you have a higher chance of getting a positive response from your market. However, if you have a niche business, it may be difficult, and you might be forced to put out a substantial amount of value to chance.
Besides the value of your business, there are other things you need to consider, such as your current clients, customers, patients, and other on-going relationships. Selling your company may harm them since you won’t have an internal successor to produce the outcome your market usually expects from you.
Myth #3: “If I Give Up Ownership, That Means I’m Giving Up Control and Steady Income”
Sadly, many people think that there are only two ways to keep a business running – either the owner continues to run the business or sell it.
While these are valid options, succession planning can give your business a more gradual shift. Additionally, you can take your time to adjust, allowing you to maintain control before the next successor proves their competence. However, the only way succession planning will work is if you give up control and have confidence with your team.
The Takeaway: Succession Planning Will Give You Peace of Mind, Knowing That Your Business Is in Good Hands Once You’ve Stepped Down
Whatever it is you plan to do with your business, it’s worth delving into succession planning so you can prepare the best outcome for your company’s future. Working with will and estate lawyers will not only benefit your business, but all relationships involved, allowing you to help settle matters today so your business can flourish tomorrow.
Why Should I Work With Springfield Legals?
Dealing with legal matters and issues can be frustrating and daunting, especially when presented with too much business and family complexities.
Thankfully, you can ask for legal assistance from reputable lawyers from Springfield Legals to guide you through your legal matters. Our will and estate lawyers specialise in family law, property and business conveyancing, income protection, and succession planning. Speak with us today!