As a small business owner, you already know that effective planning is crucial in running a successful company. In addition to protecting yourself with Orlando Small Business Insurance , you need to consider what will happen to the company when you leave. There are steps you can take right now to prepare yourself for retirement knowing that you’ve left the company in capable hands.
The Orlando Business Journal outlines some effective steps in planning for your retirement. First of all, you need to be realistic and realize that either your company will be handed to someone else, or it will close when if there is no one to lead. In hopes that it’s not the latter, here are some steps you can take to plan for your successor.
- Pay Attention to the Details. Small details about a person can tell alot. You should make sure your heir apparent has the right personality, temperament, intelligence and personal goals to lead.
- Set a probation period. This step ensures that you fully get to know your successor. During this time, you can get a feel for how the company would fair under their sole leadership.
- Offer incentives. An ambitious successor needs to know that they will continually grow in knowledge and responsibility. One option is to let them acquire partial ownership prior to your retirement.
- Create a buy-sell agreement. This is crucial. You need to have a strict outline of who does and gets what with the business. This formal agreement protects everybody. Get your attorney to help with this step.
- Build in a funding mechanism. Your business will not stand without money. You should plan now how the funds are to flow upon your retirement. Consider funding vehicles that protect your business and family.
- Take Time to Make a Plan B. Thing have a funny way of not going according to plan. Take the time to brainstorm and come up with alternative plans should unforeseen events, such as your successor passing away or becoming disabled occur.
At Newman Crane & Associates Insurance, we understand that planning for your retirement is a priority. Call today for information on our Small Business Insurance. 407.859.3691