Protecting Your Family Business with Business Succession Planning

Family businesses are a triumph. An establishment or company that has survived throughout the years is rare and quite an accomplishment. When children carry on what their parents, grandparents, great-grandparents, or other family members began, it’s an honor.

Family businesses are trademarked by the family’s characteristics and intelligence. Therefore, business succession planning needs to be a priority for any family business.

Unfortunately, those who begin a family business can’t keep running it forever. After awhile, everyone must retire. For those who believe that selling their hard-earned company is unheard of and insist on keeping it in the family (or at least keeping it entrusted to a close friend), business succession planning is a must.

Will the future owners of your business run it the way you intend? That’s where business succession planning comes in. We can handle delicate issues that come with family businesses, like the difference between ownership and management; who gets shares; who will be most active in the business, and tax issues.

It’s a good idea to begin your business succession planning at least five years before you plan on retiring, and even sooner if you’re in poor health. Be sure to involve your main successor(s) and train them on how to do everything properly. Encourage them to ask as many questions as they can.

If you’ve been procrastinating on your business succession planning, it’s never too late to begin. To learn more about business succession planning, contact us today! We’re the Braley & Wellington Insurance Agency, based in Worcester, Massachusetts.