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Why is Business Succession Planning so important? Benefits of Planning

As a successful business owner you take pride in what you have achieved and the value of the business is often the largest part of your net worth. However, for most business owners, considering an untimely death or disability and how it will impact the business, employees and family is often the last thing on your mind. Business succession planning is equally important for the owner’s retirement and the ability to monetize the value of the business while letting the successor run the business, that has been created or managed.

Following are common reasons why business owners fail to have an exit strategy

  • Too busy with the day to day running of the business and succession planning is not urgent
  • Loss of control. Business owners reluctant to hand over the responsibility to someone else.
  • Find the planning strategies and tax implications too complex to handle.
  • There may not be a right successor identified.
  • The business value not sufficient for the owner to retire.

Procrastination however, is often the main reason why business owners fail to plan. Changes can take place fast and disasters may occur without any warning. The advisors at Secure Planning Strategies are experienced and trained to educate the business owners on the benefits of succession planning, identify the steps necessary to begin planning, implement the plan agreed on and continue to monitor the plan as changes take place. They work with a team of tax accountant, certified valuation expert, tax attorney and other appropriate professionals.

A well-designed succession plan can provide:

  • Opportunity to train the future leaders and maintain the culture of the company.
  • Continuity without disruption in the event of unexpected death or disability of the business owner
  • Financial security to the business owner during retirement years.
  • Ease of administration of business owner’s estate.

Don't be just a number in a failed statistic, take action and create with us an infallible business continuity plan!