When a small business opens, owners don’t always consider what will happen when it’s time for them to step down from leadership. However, planning for this eventuality is vital to protecting and preserving what you have built. Therefore, as an owner, it’s important to plan for your small business’s succession. How does Florida small business succession planning work?
Planning for Your Small Business’s Future
Operating a small business often requires that owners focus on their entity’s day-to-day operations. Attending to your enterprise’s ongoing and immediate needs is essential. However, thinking about the long-term is also an important part of small business ownership. As you plan for your enterprise’s future, you should consider its direction. For instance, do you plan on selling your interest one day? Do you intend for your business to pass to your children? These and other questions can help you clarify your intentions.
Once you have a sense of how you want to transfer your interest, you should contact a Florida small business attorney and other relevant professionals to discuss your succession plan and available options.
Identifying a Successor
One of the major tasks of developing a Florida small business succession plan will be deciding who you want to be your successor. If you plan to sell, you will need to consider how you want to structure the transfer. For instance, do you want to remain in a consulting role? Are there certain employees that you want to remain on staff? Do you have business partners who will be sharing ownership and responsibilities with the new owner?
If you are looking to pass your ownership to a relative, you will need to carefully evaluate whether their skill set matches the business’s needs. For instance, your son may be great with employee relations but not as adept at managing accounting tasks and procuring new client accounts. If you want him to be your successor, you may need to help him ensure he will have the support he needs to operate the enterprise. You may also want to pass your interest to multiple relatives. If so, you may need to think about their current roles in your operation and whether these individuals can work together harmoniously. In addition, it is important to ensure that your chosen successor is willing and able to accept the responsibility of the role.
How Does a Succession Plan Work?
Once you have determined who you want to be your successor, you will need to develop a plan. Your small business succession plan should include a prospective time frame and certain transition details. Your circumstances may change over time, and you may need to adjust certain aspects of your succession plan. However, adjusting a well-thought-out succession plan is usually far better than not having one in place to begin with.
Having a small business succession plan is crucial to protecting your enterprise. The best way to prepare for your entity’s future is by working with an experienced Florida business attorney. Your Florida business lawyer can help you evaluate your current operation, develop a succession timeline, identify potential successors, and prepare for future transitions. Contact an experienced Florida small business attorney today to learn more about protecting your business today and in the future.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Legal Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.