Orlando Business Insurance: Succession planning for Orlando Businesses
Part of wealth management isn’t only building and growing a business, but preparing for the future. In addition to developing a vision and growth plan for your company, it is essential to prepare your business for a future that eventually won’t involve you. This is where a business succession plan comes in.
Many business owners and small business owners don’t have a well-thought out succession plan in place. But to hope it will all work out isn’t a viable option. Seventy percent of businesses die with the founder. Generally, a business fails to continue after the first generation because of two things- under-funding or lack of planning. It is estimated that up to 85% of businesses don’t have an exit strategy in place due to emotion issues, lack of a qualified successor, tax issues, lack of good advice and a general reluctance to think about and embrace change. Here are several factors to consider when you’re developing a succession plan.
Value drivers. What makes your business valuable? And how will that value and knowledge be preserved?
Ownership structure. What is your succession plan in terms of leadership? How should you structure the company now to prepare for a future leadership transition?
Contingency planning. What if an unexpected accident occurs or the transition happens sooner than you planned? Planning for unanticipated events, whether your own death, incapacity, business failure, or a desire to leave should all be included in a comprehensive business succession plan.
Tax, insurance, financial & legal planning. The logistics of succession planning are a crucial component of a succession plan, and one you may want to hire outside help for.
Part of the process includes assessing and protecting your business against liabilities and exposures. At Newman Crane, we have Orlando business insurance policies to protect your Orlando business operation from a number of potential losses, including liability and property damage. Contact us today for more information about our Orlando Retail Insurance programs. (407) 859-3691.