Oct 2014

Own a Business? You Need a Business Succession Plan

Our Business Law Attorneys Can Help You

Whether you own a small shop with one or two employees or a large enterprise with multiple locations and dozens of workers, you need a business succession plan that will keep your business operating smoothly after your death, disability, or some other event that removes key leadership from day-to-day operations.

Many people understandably avoid thinking about incapacity or death. This is especially true for business owners, many of whom have spent their whole lives working hard and building a legacy. They can’t imagine their business continuing without them at the helm. What they fail to realize is that a business succession plan is just as important – and in some cases even more important – than a personal estate plan.

Without a comprehensive business succession plan in place, your business could experience needless financial disruption, profit loss, and even closure. If you run a family-owned business, your death or disability could also prompt serious family conflict that can jeopardize the future of what you worked so hard to build. A business law attorney can help you protect your legacy.

Unpredictable Events are Just That: Unpredictable

Life is changeable and unpredictable. An abrupt illness, a serious accident, a natural disaster, or even early retirement can shake up even the most solid business. When leadership is suddenly absent, the entire organization suffers. By working with a business law attorney to craft a business succession plan, you can preserve your hard work and your legacy for your family or other successors.

What to Include in Your Business Succession Plan

Every business has unique needs and goals. A well-drafted business succession plan should incorporate everything necessary to ensure your business survives and thrives under new leadership. It should also allow successors to step in and quickly take over, which will ideally minimize the transition period after a triggering event. At a minimum, your business law attorney should help you draft a plan that accomplishes the following:

  • Identify key leadership and important personnel
  • Define triggering events
  • State the business’s objectives
  • Establish short-term and long-term goals
  • State preferred methods for resolving disputes
  • Outline options for purchase and sale

The preceding components provide a general framework for a business succession plan. Your business’s needs may require additional business law elements based on the type of business you run, your immediate and long-term goals, and your financial stability.

Springfield, Missouri Estate Planning and Business Law Attorneys

In most cases, a business owner’s personal estate plan intersects with his or her business succession plan. These are both complex areas that require the experience and knowledge of a Missouri business law professional and estate planning attorney. Contact the Law Office of Randy L. Smith, LLC today at (417) 841-2775 to schedule your consultation.

This website has been prepared by The Law Office of Randy L. Smith, LLC for informational purposes only and does not, and is not intended to, constitute legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.