If you are a small business owner in Hawaii, you know the effort and struggle it can require to actually make a business succeed. It takes planning, preparation, funding and a great business idea to really make a small business work, but the planning should not stop once you start making a profit. It is also beneficial to include your business as part of your estate plan.
As the owner of a small business, you may have given thought as to what will happen to your company in the future. Whether it is through your death or your retirement, something will happen to your business, and you have the right to decide what that is. A strong business succession plan is a key component in preserving the value of your assets.
Planning for what happens next
If you pass unexpectedly or suddenly find yourself unable to work because of a medical condition, what will happen to your business? With an exit strategy in place, you can ensure the security of your assets and continuity of operations. As you develop a succession plan, it is beneficial to ask yourself the following questions:
- Do you have a successor? If you have a specific person chosen as your successor, it should be very clear who that individual is in the terms of your succession plan.
- Does your successor know what to do? Having a training plan in place for your successor can be greatly beneficial in the event that the transition takes place suddenly and without warning. You can include training information as part of your succession plan.
- Do you have a timeline? You can outline your plan for when and how you will step away from your business. While you cannot control the future, a plan can offer you security and peace of mind.
You may also wish to include other possibilities, such as your intention to sell the business, plans for future expansion and how you wish to handle business-related assets.
Exercise your right to decide
Having a succession plan in place is not only good for your business and your peace of mind; it is good for your family and those who may take over the business in the future. You worked hard to build your business and keep it going, and you have the right to decide what happens to it when you move on. If you have not included an exit strategy as part of your estate plan, it is wise to consider the benefits of doing so now.