Planning For Business Continuity

Wednesday, April 14th, 2010 at 10:55 am

You may have been thinking about how to be able to transfer your business. This is where adequate business succession planning comes in, and though it may look complicated, this is something that can be done in a very efficient way. Whether you’re planning to turn the business over in six months or six years, having this plan in place is key to making sure everything happens in an orderly way.

Consider how you handle other issues- for weight loss and fitness, you have a personal trainer. For tax preparation and guidance, you have a Certified Public Accountant. Preparation in any case is an important factor in success.

So, it only makes sense that you would want someone on your side when it comes down to making sure that the transfer goes as smoothly as possible. There are a variety of ways to do this, but asking yourself and those involved some questions about your existing set up can help.

It does not matter if your business is a large scale retailer, or even just an internet business income. You can benefit from having something set up in case of a need to transfer. The consequences of not doing so may be worse than you imagine- from tax issues to debt, perhaps even the business closing down. Taxes, especially estate taxes are the cause of many businesses closing their doors.

There are a couple of things you can do up front, easily. Life insurance, annuities and disability insurance in place can help. But also, think about the capital that would be needed to continue running your business. Consider what sort of plan you can set in place to be sure things go ahead in an efficient and productive manner, were you to not be around for whatever reason.

You may also consider what will happen to your existing client or customer base. Will they stop utilizing your businesses’ services or stop purchasing products when you are no longer the owner? This is an important factor to consider in capital. Also, making sure that if the business is a partnership, there is a way for the other partner to take control if need be is vital. Managing all of this prior to it happening may save more than you realize.

Once you have taken a look at the situations that can happen, proper planning is next. Think through possible scenarios and consider each and every possible solution. Once you are able to do all of this, if there is a reason to transfer your business, it can be handled in a much better way.