Part of starting your business is creating a legacy for your loved ones. In addition to providing for them during your life, you may hope your business will continue supporting your family after you are gone.
There is a lot to consider as you decide how you want your estate plan to address your business. In addition to determining who is best suited for the ownership role, you will also need to think about your loved one’s plans.
Here’s what to consider as you determine who is the best fit to take over your business.
Involving the candidates
Passing on your business is not something to include as a surprise in your will. When you do not include your loved ones in your decision, you could inadvertently give your company to someone not interested in that particular career path.
As you think about the best succession plan for your business, consider the people who have a genuine interest in the company and are willing to commit the same dedication you have.
Setting them up for success
When you decide and include the potential candidate, you can ensure they are ready for the next phase of the business. Depending on your background, you may have started your business with your experience alone to guide you.
Including your successor in your plan means you can guide them as they prepare to fill your shoes, such as:
- Education goals
- Shadowing roles in the company
- Working in related businesses
- Learning about your client’s needs
These experiences can help you equip your loved one to understand your role and support and advance the business into the future.