Some plans need to be started five years in advance; others take at least two years to develop and implement. But like most things in life, it is never too early to begin planning. In fact, not preparing beforehand will actually make the process more difficult in the long run. It’s much easier to start early and go through the process one step at a time. This will help you understand each procedure and give you confidence when developing your succession plan from start to finish.
The business owner will have to deal with the reality that the Business Succession Plan is a plan for change, and no one likes change. Until this is accepted, then there will be major obstacles to starting and developing a successful plan.
A plan can help you make important decisions about ownership, maximizing your company’s value and tax strategies.
Once you have accepted that business succession planning will be good for you, your family, the business, and the new owners, then you can proceed with starting the planning process.
For more information on business succession planning, read our other article: What is Business Succession Planning?
Tom Zaks is a seasoned portfolio manager and wealth advisor, a former business TV commentator, an experienced university lecturer, and the author of three wealth management books tailored to Canadian business owners. The above is an excerpt from his most recent book, The Business Owner’s Guide to Tax and Succession Planning.