Do I Need a Business Succession Plan?

Do I Need a Business Succession Plan?When you are starting a new business, the excitement about moving ahead sometimes means that you miss important details about the future. Many new business owners don’t want to think about what might happen in the event that something happens to one of the others, but it’s prudent planning to develop a business succession plan with an attorney from the get-go. This ensures that in the event something happens, your wishes will be followed. Developing a plan is a critical part of the business formation process.

There are many reasons that a person might need a business succession plan. You might reach a point where you want to retire or to pass the business on to a relative. Perhaps one partner in the business passes away suddenly, leaving many questions about their duties and the future of the company. Knowing what you want to happen in the event that you want to leave the business is important for documenting the exact plans.

Having a business succession plan in place also reduces confusion in what can be emotional and chaotic times. Particularly if a partner departs suddenly, it can be difficult to continue business operations without an understanding of the protocol involved. Articulating and following a business succession plan reduces the likelihood of arguments and allows you to continue focusing on the business with as little disruption as possible.

Depending on your situation, you might want to sell the business, close the business, continue as usual, or look for another partner to invest in the business. Having the conversation with your partner and an experienced Illinois business attorney now can make your life much easier down the road. Reach out to schedule a conversation for your current and ongoing business legal needs for your company.