As a business owner in Texas, it’s possible that creating a business succession plan is not at the forefront of your mind. This may be because of the common misconception that you don’t actually need a succession plan until you retire. Unfortunately, that is incorrect.
FindLaw takes a look at why you should look into getting a business succession plan sooner rather than later. The first reason is because life is unpredictable. In an ideal world, we would all be able to retire at the exact age we want to. You would have all the time you need to take a careful look at your successors and how you want things to be passed down.
Unfortunately, unpredictable things happen every day in real life. You may find yourself facing an injury or illness that permanently affects your ability to run your business. You may even end up wanting to pursue other endeavors or grow tired of the work you are currently doing. Regardless of the reason, any small change can make it harder for you to run your business.
To prepare for these sudden, unexpected circumstances, it is important for you to have a business succession plan already in waiting. Know who you want your successor to be and have backup plans in case that doesn’t work out. Have an idea of what you want passed on to the next generation, including core values and principles of the company as well as how you want things to be run on a technical level. By having these things already prepared, you can save yourself a lot of hassle.