In most small- to medium-sized businesses, the business itself is the primary asset of the business owner. Thus, succession planning is a critical component for most business plans. With most entrepreneurs, their vision of “succession planning” is generally focused on wills, tax strategies, estate structures and financial planning tools. These are all very important areas of planning, however it is important to first identify personal goals and then ensure that the succession plan, and the family business itself, are structured around them.
Problems arise because business owners often play many roles and when these roles overlap confusion often reigns. A successful business succession plan involves an understanding of how to separate and address the issues individually before they become roadblocks.
Business owners wear many hats and burn up significant amounts of mental energy. Thus, it makes sense to step back and take time to work on the business instead of working in the business. Avoiding common mistakes that can destroy a business and its future is critical. Compass Benefits helps businesses avoid the common mistakes and guides businesses in the right direction.
Succession planning impacts the business owner in all three areas of a family or closely held business (ownership, management, and family/personal). Compass Benefits can help businesses design a detailed succession plan that serves to help protect the ownership and wealth of the business, while also addressing the financial plan risk management issues of the individual owners.