{"id":6488,"date":"2019-11-06T13:02:08","date_gmt":"2019-11-06T21:02:08","guid":{"rendered":"https:\/\/zdybfinancials.com\/?page_id=6488"},"modified":"2020-04-15T23:35:58","modified_gmt":"2020-04-16T06:35:58","slug":"succession-planning-for-business-owners","status":"publish","type":"page","link":"https:\/\/zdybfinancials.com\/succession-planning-for-business-owners\/","title":{"rendered":"Succession Planning for Business Owners"},"content":{"rendered":"<div class=\"flex_column av_one_full  flex_column_div av-zero-column-padding first  avia-builder-el-0  avia-builder-el-no-sibling  \" style='border-radius:0px; '><p><div  class='avia-image-container avia_animated_image avia_animate_when_almost_visible left-to-right av-styling-    avia-builder-el-1  el_before_av_hr  avia-builder-el-first  avia-align-center '  itemprop=\"image\" itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/ImageObject\"  ><div class='avia-image-container-inner'><div class='avia-image-overlay-wrap'><img decoding=\"async\" class='wp-image-6734 avia-img-lazy-loading-not-6734 avia_image' src=\"https:\/\/zdybfinancials.com\/wp-content\/uploads\/2020\/02\/successionPlanningforBusinessOwners.jpeg\" alt='' title='successionPlanningforBusinessOwners' height=\"810\" width=\"1440\"  itemprop=\"thumbnailUrl\" srcset=\"https:\/\/zdybfinancials.com\/wp-content\/uploads\/2020\/02\/successionPlanningforBusinessOwners.jpeg 1440w, https:\/\/zdybfinancials.com\/wp-content\/uploads\/2020\/02\/successionPlanningforBusinessOwners-300x169.jpeg 300w, https:\/\/zdybfinancials.com\/wp-content\/uploads\/2020\/02\/successionPlanningforBusinessOwners-1030x579.jpeg 1030w, https:\/\/zdybfinancials.com\/wp-content\/uploads\/2020\/02\/successionPlanningforBusinessOwners-768x432.jpeg 768w, https:\/\/zdybfinancials.com\/wp-content\/uploads\/2020\/02\/successionPlanningforBusinessOwners-705x397.jpeg 705w\" sizes=\"(max-width: 1440px) 100vw, 1440px\" \/><\/div><\/div><\/div><br \/>\n<div  style='height:25px' class='hr hr-invisible   avia-builder-el-2  el_after_av_image  el_before_av_textblock '><span class='hr-inner ' ><span class='hr-inner-style'><\/span><\/span><\/div><br \/>\n<section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock  '   itemprop=\"text\" ><p>Business owners deal with a unique set of challenges. One of these challenges includes succession planning. A succession plan is the process of the transfer of ownership, management and interest of a business. When should a business owner have a succession plan? A succession plan is required through the survival, growth and maturity stage of a business. All business owners, partners and shareholders should have a plan in place during these business stages.<\/p>\n<p>We created this infographic checklist to be used as a guideline highlighting main points to be addressed when starting to succession plan.<\/p>\n<p><strong>Needs<\/strong>:<\/p>\n<ul>\n<li>Determine your objectives- what do you want? For you, your family and your business. (Business&#8217; financial needs)<\/li>\n<li>What are your shares of the business worth? (Business value)<\/li>\n<li>What are your personal financial needs- ongoing income needs, need for capital (ex. pay off debts, capital gains, equitable estate etc.)<\/li>\n<\/ul>\n<p>There are 2 sets of events that can trigger a succession plan: controllable and uncontrollable.<\/p>\n<p><strong>Controllable events<\/strong><\/p>\n<p><strong>Sale<\/strong>: Who do you sell the business to?<\/p>\n<ul>\n<li>Family member<\/li>\n<li>Manager\/Employees<\/li>\n<li>Outside Party<\/li>\n<li>There are advantages and disadvantages for each- it&#8217;s important to examine all channels.<\/li>\n<\/ul>\n<p><strong>Retirement<\/strong>: When do you want to retire?<\/p>\n<ul>\n<li>What are the financial and psychological needs of the business owner?<\/li>\n<li>Is there enough? Is there a need for capital to provide for retirement income, redeem or freeze shares?<\/li>\n<li>Does this fit into personal\/retirement plan? Check tax, timing, corporate structures, finances and family dynamics. (if applicable)<\/li>\n<\/ul>\n<p><strong>Uncontrollable Events<\/strong><\/p>\n<p><strong>Divorce<\/strong>: A disgruntled spouse can obtain a significant interest in the business.<\/p>\n<ul>\n<li>What portion of business shares are held by the spouse?<\/li>\n<li>Will the divorced spouse consider selling their shares?<\/li>\n<li>What if the divorced spouse continues to hold interest in the business without understanding or contributing to the business?<\/li>\n<li>If you have other partners\/shareholders- would they consider working with your divorced spouse?<\/li>\n<\/ul>\n<p><strong>Illness\/Disability<\/strong>: If you were disabled or critically ill, would your business survive?<\/p>\n<ul>\n<li>Determine your ongoing income needs for you, your spouse and family. Is there enough? If there is a shortfall, is there an insurance or savings program in place to make up for the shortfall amount?<\/li>\n<li>Will the ownership interest be retained, liquidated or sold?<\/li>\n<li>How will the business be affected? Does the business need capital to continue operating or hire a consultant or executive? Will debts be recalled? Does the business have a savings or insurance program in place to address this?<\/li>\n<\/ul>\n<p><strong>Death<\/strong>: In the case of your premature death, what would happen to your business?<\/p>\n<ul>\n<li>Determine your ongoing income needs for your dependents. Is there enough? If there is a shortfall, is there an insurance or savings program in place to make up for the shortfall amount?<\/li>\n<li>Will the ownership interest be retained, liquidated or sold by your estate? Does your will address this? Is your will consistent with your wishes? What about taxes?<\/li>\n<li>How will the business be affected? Does the business need capital to continue operating or hire a consultant or executive? Will debts be recalled? How will this affect your employees? Does the business have a savings or insurance program in place to address this?<\/li>\n<\/ul>\n<p><strong>Execution: <\/strong>It&#8217;s good to go through this with but it&#8217;s necessary to get a succession plan done.\u00a0 Besides having a succession plan, make sure you have an estate plan and buy-sell\/shareholders&#8217; agreement.<\/p>\n<p>Because a succession plan is complex, we suggest that a business owner has a professional team to help. The team should include:<\/p>\n<ul>\n<li>Financial Advisor<\/li>\n<li>Succession Planning Specialist<\/li>\n<li>Insurance Specialist<\/li>\n<li>Lawyer<\/li>\n<li>Accountant\/Tax Specialist<\/li>\n<li>Chartered Life Underwriter (CLU)<\/li>\n<\/ul>\n<h3>Next steps&#8230;<\/h3>\n<ul>\n<li>\u200a<a href=\"https:\/\/www.appsforadvisors.com\/contact\">Contact us<\/a> about helping you get your succession planning in order so you can gain peace of mind that your business is taken care of.<\/li>\n<\/ul>\n<\/div><\/section><br \/>\n<div  class='avia-button-wrap avia-button-left  avia-builder-el-4  el_after_av_textblock  avia-builder-el-last ' ><a href='https:\/\/zdybfinancials.com\/contact\/'  class='avia-button  avia-color-theme-color   avia-icon_select-no avia-size-large avia-position-left '  target=\"_blank\"  rel=\"noopener noreferrer\"  ><span class='avia_iconbox_title' >Contact Us<\/span><\/a><\/div><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":8,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.1 - 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