Whether you’re planning for your retirement or a sudden passing, you may not be able to enjoy peace of mind unless your business is accounted for. If you envision your company continuing once you’re no longer involved, you’ll need to create a valid succession plan. Before meeting with an estate planning attorney, use these tips to ensure that the transition goes as smoothly as possible.

3 Tips for Creating a Business Succession Plan

1. Choose Your Ideal Successor

The first part of your plan will require plenty of personal consideration—mainly, who do you think can and should continue your hard work?

Whether you envision your child following in your footsteps, or your loyal assistant taking the reins, you should be confident in this decision before setting it in stone. Make sure that the individual will be trusted by your current clientele and respected by the employees. 

2. Work Out the Details

Once you’ve decided who will be in charge, you’ll need to think about who will own the company. If there are several owners or partners, draft a buy-sell agreement.

This will dictate how many of your shares go to each partner or owner, or if they should go to your successor. This agreement may also stipulate the value of those shares, which can prevent conflict during the transition process.

3. Get Everyone on Board

It’s also important to know that the individuals you are entrusting with these roles and responsibilities are willing and available to accept them. Talk to your initial successor, as well as those you may have selected as next-in-line, and make sure they’re enthusiastic about the opportunity.

Then, speak with your partners, and make sure you’re all on the same page. Finally, you can meet with an estate planning attorney to finalize your decisions.

Once the new standards have been set, you may want to brief your middle-tier employees on the plans, so they can rest easy knowing the company will continue after you’re gone.

To start crafting your succession plan, reach out to Lance S. Cox, Attorney at Law of Cincinnati, OH. This estate planning lawyer will take care of all the details, whether you plan to sell your business or pass it on once you retire. With over three decades of experience to back his advice, you can trust that this attorney and his staff will lead you in the right direction. To learn more about their practice areas, visit the website. You can also call (513) 528-6000 to arrange for a consultation.