Most Colorado business owners don’t have enough time during the day to complete their day-to-day tasks let alone having enough time to sit down and develop a Business Succession plan. However the continuation of a business is something that crosses the mind of business owners, and it is something that must be addressed before it’s too late. Business succession is an Insurance Policy that allows for a structured continuation of a business, and the financial benefits to accomplish that plan.
There are many facets involved in creating a successful business plan. One key element that many Colorado business owners overlook are clearly defined goals. These goals must be focused and measurable. One important goal in business succession is addressing concerns relating to when is it time to sell financial stakes or transfer power. Other issues that must be attended to are what will the current partners do after the transfer and what is the specific percentage of the purchase price that can be financed. Other considerations should be identifying the profile for an ideal buyer and their fit for the future of the business or how the partners will buy out the firm. Finally, tax implications need to be addressed. With no vision and no goals defined, businesses are not very likely to experience a positive continuation of business as usual.
When business owners dedicate themselves to building a business they should also devote time to planning for its continuation. A successful business is a legacy that can be passed on and prosper in the right hands, but defined goals are integral to facilitating this. Understand that these elements are only part of an overall succession plan. Contact one of our Colorado insurance brokers to find out more about business succession.