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.