These Three Tips Can Help You with Business Succession Planning. As the owner of a business, it is important to always be looking towards the future. Although it’s easy to become mired in the day to day details of operating an Arizona business, it is valuable to think about where the future of your company is headed and who might be at the helm if that happens. These three tips can help you if you find yourself looking towards the future of your business.
Basics of Business Succession Planning
This process of identifying individuals who can take over in the future is known as business succession planning and it involves a comprehensive look at your business now and where it may be in the future.
Having an Arizona business attorney on hand can help you in the event that conflicts arise or that there are other essential elements associated with your business succession planning, such as partnership agreements.
Take a Look at Your Finances
First of all, analyze your individual financial situation. You need to understand your own financial position before making plans for the company. Make sure that all of your assumptions and current beliefs are validated by a financial advisor.
Evaluate Ownership Possibilities
Next, consider your ownership and business goals. Is it your goal for the business to continue or do you wish to sell the company? If you wish for the company to continue, how do you see it evolving? Are there individuals already in place in the company who could help to replace you or do you need to tap higher and train additional individuals to support multiple levels of the company? If there are second or third generation family members who may want to be considered for ownership, you need to think about how this will influence a potential sale of the company as well.
Get a Proper Business Valuation
Finally, you need to know what your business is worth. Just like it is important for you to understand your individual financial situation, you need to have an accurate valuation of your company so that you can understand whether now is a good time to sell the company or whether there are other actions you can take to increase the value of your business. Having an accurate financial picture of your own situation as well as the company gives you clues about where you can improve and how the future of the business could be impacted.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Three Tips Can Help You with Business Succession Planning, or any other litigation matters, please feel free to contact Roger C. Decker at 480.461.5343, log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.