While the topic of wills is notoriously difficult for people, it’s incredibly important for business owners to have a business will in place in case of the worst-case scenario. By planning ahead, you will be ensuring your assets are left to beneficiaries of your choice. Without a will, business partners, lawyers, state government and banks could be the ones enjoying all the years of your hard work, not your preferred beneficiaries.

Having a will in place for your business is more commonly referred to as succession planning.

What is succession planning?

A formal financial planning process which enables business owners to create their preferred exit options while they’re still in a position of control.

Planned and unplanned exits.

There are generally two events to consider: Planned and unplanned exits. Building a succession plan helps to ensure you’re prepared for both and will give certainty around potential outcomes.

  • Planned exits typically include retirement or a mutual agreement between business partners to part ways.
  • Unplanned exits include terminal illnesses that prevent you from continuing to run the company, or worse, death.

What does a business succession plan look like?

A typical business succession plan includes:

  • Different exit strategies
  • Trigger events, that would result in you or your business partners exiting the business
  • A strategy of how this exit would look like
  • A strategy to take on new business partners

Ready to set your business up with a succession plan?

Get in touch to arrange a free, no obligation, meeting with the Carbon Wealth Management team and find out your options.