Tips for Successful Business Succession Planning

For many business owners, creating a business succession plan can seem overwhelming. However, coming up with a strategy can help you solidify your mission so you are better prepared when there is a transition within your company. Here are some ways to plan for your business succession:

Be Proactive

It’s important to review your business strategy before diving into succession planning. Aligning your succession plan with your business strategy will not only reinforce the strong foundations that you’ve built over the years, but it will also help implement development plans for the future. With effective succession planning, you can take the time to make sure that all aspects of the business have been considered – finances, taxes, compliance, stakeholders, etc.

Be Transparent

Creating a feeling of uncertainty about the company’s future is the last thing you want to do as it may cause employees to feel that the business and their jobs are in jeopardy. Thus, explaining the succession plan to your employees and being upfront in your communications will ensure that you intend to keep the business stable and prosperous for the long haul.

Think About Tax Implications

Ensure that your business succession plan addresses tax implications for the business structure to avoid bumps in the road during the transition. It’s important to discuss changes in business structure with a business succession expert who can anticipate tax implications.

A tax advisory firm is significantly valuable when you’re creating a business succession plan as they understand the financial and legal considerations of your planning and can help navigate tax regulations. Our Certified Public Accountants at JTS Associates can help create a custom succession plan that allows you to achieve your goals.

For more information on how our services can help with business succession planning, please contact us at 516-877-5900.