Is Your Small Business Ready for the Next Generation?

As a small business owner, I understand the number of hours that go into thinking, planning, and worrying about your business. It doesn’t matter if you own a bakery, a farm, an architectural firm, or sell clothing—you’ve undoubtedly poured 110% of yourself into making every single day worthwhile. And what you’ve built is a strong foundation to be proud of.

As your business grows, it's important to plan for its future. Although it may be hard to imagine a time when you're no longer steering the ship, preparing for the next generation of ownership is wise.

A succession plan is your vision for the next generation of your business. Have you considered who will take over after you retire and when you want to transition out of ownership? Will you sell your business or pass it down to your family? These are all questions to think about.

Planning for a future transition is important for the longevity of your business and for maintaining peace in the family. In certain situations, family members simply cannot agree on how to fairly divide assets amongst themselves, which can evolve into intense family conflict. I doubt you want to see your legacy at the center of such a disagreement.

Although considering your future retirement may seem like a far-off concept, a carefully crafted strategy can reduce stress by providing you and your family with clarity and direction. You’ll also feel better knowing that you have a plan in place should anything happen to you. So, my advice for small business owners is to start planning now for the future of your business and avoid potential family disputes over your legacy.

Insurance issued through many fine carriers. Securities and advisory products offered through Principal Securities, Inc., Member SIPC, Des Moines, IA 50392. Geoff Stamp, Principal Securities Registered  Representative and Financial Advisor. 3050030-082023