You may have a great deal of pride in a business that you built from the ground up, but most people do not want to work their entire lives. Retirement is the goal for many workers in Austin, but what happens to your business after you retire or if you suddenly pass away? This is when business succession planning becomes important.
Options for business succession
You have a variety of options for business succession. One option, if your business is a partnership, is to sell your share in the enterprise to your partners. This can avoid a scenario where your share of the business is inherited by your spouse upon your death, rather than passing to surviving partners. Generally, such sales are accomplished through a buy-sell agreement between partners.
If you are a sole proprietor and none of your heirs wish to continue the business upon your retirement or death, an option is to sell your enterprise to a third party. Many people interested in this option work with a business broker to accomplish their goal.
If your heirs do wish to continue your business upon your retirement or death you can transfer ownership of the business to them. This can be done through estate planning, often with the help of an executive coach.
Finally, you can always choose to sell your business to someone who currently works for you. Loyal employees often already know the ins-and-outs of the business, and you may have the option of training them before you retire.
Determine which option is right for you
All these business succession options have their benefits. Which one is right for you will depend on the nature and structure of your business, along with your personal interests. In the end, having a succession plan is a key component in any business.