04/18/2023
The Importance of Business Succession Planning
Source: Federated Insurance, April 18, 2023
Business succession planning is necessary to ensure a smooth transition when you choose to sell your company or are no longer able to run it. Below, we’ll help you learn how to decide who will take over your business, how business succession should occur for a smooth transition, and more. Without a written plan, you will leave much of the decision-making up to the state and your already grieving family.
Who Will Take Over Your Business?
One of the first questions that needs to be considered when thinking about your business succession plan is who is going to take over your business. For some business owners, it might be a child who has been working in the business and is ready and willing to step in at any time. Others may have a key employee with years of service who has expressed an interest in taking over.
In any case, finding the right person is an important decision. It can mean the difference between financial security and financial hardship for you, your family, and your employees if your successor is not able to keep the business operating successfully.
When and How Will Your Business Succession Occur?
Once you have identified who you would like to take over your business, the next step is to figure out the details — the when and the how of your transition plan. There are basically two ways ownership of a business can be transferred: By sale or by a gift/inheritance.
The best option for your business — whether it’s a sale, a gift, or a combination of the two — will depend on a variety of considerations and your individual circumstances.
Federated Insurance provides many different coverage options for printers and graphic communications companies. They include: limited pollution coverage, equipment breakdown endorsement, publishers liability insurance, graphic edge commercial output policy, graphic arts errors and omissions insurance and a graphic arts umbrella liability program. You don't know how much you need these great safety nets… until you need them. The short-term cost is minimal compared to the long-term risk you're taking.
To learn more about United Insurance or Federated Insurance, call your Business Development Director at (888) 576-1971.