If you have a business, you have likely thought about what would happen to your business after your death. A well-run, well-managed family business could potentially provide for your loved ones long after you are gone. Unfortunately, according to the Family Business Institute, less than one-third of all businesses survive into the second generation. The reason for this is largely due to a failure to plan for the future on the part of the owner of the business. Business succession planning is like writing an estate plan for your business. Few people are enthusiastic about estate planning, but most adults do recognize the wisdom in doing so.
If you have poured your time and energy into your business, you want to make sure it succeeds you. What you don’t want is your death to cause infighting among family members, and you certainly don’t want your business to collapse or end up in liquidation. In a best-case scenario, you will have planned so thoroughly for your business succession that every family member will know his or her role in the business, and the business will continue, as strong as ever. [Read more…]