April 23, 2015

How you think about your retirement has a big impact on the way you approach succession planning. There are two common misconceptions that business owners might have about retirement, both of which can throw off the purposes of your business succession planning. 

First of all, let go of any ideas that you have where you see retirement as death. Many small business owners avoid succession planning because they have difficulty grappling with the idea of not working someday. Perhaps it’s because you feel that your identity is tied to working, but this is big reason why so many business owners miss out on the critical benefits associated with succession planning. Not planning ahead puts your family members and your staff in a position of serious vulnerability.

Retirement also should not be viewed as deciding not to go to your office anymore. It’s a complex process that involves thinking about whether you have enough money to retire. It’s about making the big decisions linked to whether you’ll be selling your company or whether it will carry on without you. If you plan for your business to go on, how will that transfer of ownership happen? Don’t make the mistake of assuming that business succession planning and retirement are only about the choice you make to leave the work world.

These misconceptions could wind up costing you a lot if you’re not careful. Strategize now with a business succession planning attorney to get your questions answered. Your appointment can be scheduled at info@lawesq.net.