Updating your business plan Livesexy video
There are exceptions, like a division where one successor can focus on sales, and the other on product development.But businesses are generally much harder to manage with multiple decision makers.Generally speaking, you don’t want to grant ownership to family members who aren’t involved in the business.Instead, many succession plans will include a buy-sell agreement work in the business, you typically still want to pick a single successor, as opposed to splitting ownership evenly between your heirs.
A buy-sell agreement with a co-owner requires a lot cash kept on-hand.
Business succession planning is a series of logistical and financial decisions about who will take over your business upon retirement, death or disability.
To write a succession plan, the first step is to identify the ideal successor to take over the business, then determine the best selling arrangement.
What better way to look out for your family than providing them a full-running enterprise, and who better to uphold the mission of your business than your own family?
Of course, like any major family decision, it can stir a lot of conflict if not planned properly.
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