Small Business Legacy
After a hard day of work, you deserve to kick up your feet and put your feet up. But before you reach for the remote control, remember that there are two things in life that never take a break: taxes and death.
The best way to avoid any issues with one or both of these is to create an estate plan or business succession plan—whichever fits your small b usiness—so that when you do finally pass on or step down from the helm of your company, everything is taken care of. If you don’t have one yet, now’s the time to start making it happen.
Although most people think these plans are only for older entrepreneurs who own companies worth millions, nothing could be further from the truth.
The best way to avoid any issues with one or both of [these topics] is to create an estate plan or business succession plan—whichever fits your small b usiness—so that when you do finally pass on or step down from the helm of your company, everything is taken care of. If you don’t have one yet, now’s the time to start making it happen.
Although most people think these plans are only for older entrepreneurs who own companies worth millions, nothing could be further from the truth.
As a small business owner, you should know better than anyone else about how important it is to keep track of your finances and maintain good relations with customers and suppliers. The same holds true for planning for life after death. As soon as you start a business, whether it’s a corner store or a consulting firm, you should think about how your business will continue without you and what sort of legacy it leaves for others.
As a small business owner , you should know better than anyone else about how important it is to keep track of your finances and maintain good relations with customers and suppliers. The same holds true for planning for life after death. As soon as you start a business, whether it’s a corner store or a consulting firm, you should think about how your business will continue without you and what sort of legacy it leaves for others.
While it may seem like an easy matter compared to personal finance, the truth is that there are many pitfalls to avoid when it comes to handling the financial side of a small business’s succession.
The first step is understanding your assets and what you can leave behind. This means not only tangible property like inventory, equipment or real estate, but also things like intellectual property—like patents and trade secrets—as well as any goodwill in your customer base.
The next step is figuring out how all that fits into an estate plan , which includes everything from who might get what piece of property after you go, to more abstract stuff like deciding on a guardian for your kids if something happens to both of their parents while they’re still minors. If you have a will, trust or power of attorney already in place (and 15% of Americans do), then you are well on your way to making sure that you’ve got everything covered.
The first step is understanding your assets and what you can leave behind. This means not only tangible property like inventory, equipment or real estate , but also things like intellectual property—like patents and trade secrets—as well as any goodwill in your customer base.
Next come the financial considerations: this is where it gets complicated, so if at all possible, get some professional help. You need to consider how much you want to spend educating them about your business and how much money they’ll need to continue without you . Unless they’re already familiar with an industry, they’ll probably need some schooling before they can take over the reins themselves.
After a hard day of work, you deserve to kick up your feet and put your feet up. But before you reach for the remote control, remember that there are two things in life that never take a break: taxes and death. The best way to avoid any issues with one or both of these…