6 Tips for Transferring Your Business to the Next Generation
After pouring all of your time into your business over the course of your life, letting go can be a difficult experience. But at some point, it may happen, and one of our real estate attorneys in Sonoma County can help you with the process.
Here are six tips from Johnston & Associates Law Firm to help you transfer ownership as smoothly as possible:
- Plan Early
Even if your children seem “too young” to be business owners, time goes by fast. Start laying the foundation for a succession plan as early as possible to increase the chances your business will succeed.
- Communicate
Don’t hide financial issues or concerns: be completely open with your children. Encourage them to tell you what they want and don’t want out of business ownership. Getting everything on the table will eliminate future problems.
- Put Everything in Writing
Be sure to have a comprehensive succession plan in place. This will ensure your business has a written plan to help it thrive once you’ve handed over the reigns.
- Discuss Goals
Make sure you know what each party plans to achieve once the process is over and done with. It’s an easy step to overlook, but it’s just as important as handling estate planning, taxes, and other aspects of succession.
- Plan Income
If someone needs an income from the business to form a part of their retirement plan, the successors need to know this. Have these conversations as early as possible to determine what the business can handle. Talk to an estate planning professional if you’re having trouble.
- Speak to an Expert
At the end of the day, transferring ownership of your business is a complicated process. With all the emotions involved, consider hiring a business planning expert to consult between parties from a neutral position.
Call Johnston & Associates Law Firm for your estate planning needs today!
If you haven’t started planning on how to transfer your business to the next generation, now is the time. At Johnston & Associates, we make it our duty to put our clients first at all times. Contact our Sonoma County real estate attorneys to help you get started.