While the topic of wills is notoriously difficult for people, it’s incredibly important for business owners to have a 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 business, 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 team and find out your options.