It is simply imperative that individuals who own a family business put a succession plan in place. A recent article offers several tips for getting started on a succession plan for your family business.

In order to plan for the unexpected, business owners should have a succession plan in place as soon as possible after starting their business. At the very latest, business owners should create a succession plan five years before they plan to retire.

When considering the future ownership of the business, business owners should consider all potential options, which may include: (1) transferring to a child or other family member, (2) selling to an employee or partner, or (3) selling to an outside buyer. A succession plan should not only include a blueprint of the future ownership, but it should also include the fair market value of the company.

Once a business owner has a solid idea for the future of his or her business in place, it is important that he or she speak with professionals about the succession plan. Professionals that can offer advice concerning a business succession plan include financial planners, accountants, bankers, and attorneys.

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