Louisiana small businesses are re-evaluating their business succession plans with the rise in COVID cases and the emergence of Delta. And as frustrating as these delays can seem, I am here to remind you of one key inevitability: The Return Normalcy. While emergency succession planning is incredibly important, it is not the long-term, sustainable succession plan that will strengthen your business over time. With the ever-changing tide of business management coming head to head with its latest challenge (a second COVID surge), now is the time to redraft your business succession plan for maximum results.
Changes to Your Business During the Pandemic
The pandemic served as an abrupt and often rude awakening to business owners around the world. It also gave businesses the opportunities to implement long-awaited changes in their business models. However, many business owners still struggle to get started with their business succession plans.
What is Business Succession Planning?
Business Succession Planning, also known as Exit Planning, is the process of creating a plan for the ways things will be run in your business after you retire, become disabled, or pass away. In short, it is the plan of passing control of your business onto others.
How Has COVID Affected Succession Planning?
In addition to preserving their business for staff and customers, business owners have to consider how a change in demand and other pandemic-related factors may affect the need for a Master Plan. The COVID-19 pandemic has altered the environment in business succession planning, so business owners need to re-orient their focus towards what the new ‘finish line’ looks like while keeping their businesses going.
Business Succession Planning Checklist
While discussing your plans with your attorney, it’s helpful to check off items on the Business Succession Planning Checklist. Here are a few items to consider during your next appointment:
- Who will run the business once you are no longer able to?
- Do you have sufficient resources to hire someone to replace you?
- Are you set up for sufficient income from retirement?
- Who is managing your succession plan to ensure its success?
- Are all partners in agreement?
- Do your estate planning needs aligns with your business succession plan?
- Have you considered the impact of estate taxes?
Thank you for your time, interest, and attention! If you are considering making Estate Planning part of your spring cleaning to-do, visit LawEJM.com or email edward@lawejm.com!
