As a business owner, one often invests much time and energy into the day-to-day operations. As a result, many owners are likely to sidestep or forget to take the time to establish a long-term plan for the business and simply presume their child will hold the same passion for the business and knowledge in the industry as they have. But, what happens if the child or children have no desire to inherit the business?
First, having a succession plan in place for the business is just as important as having a will for ones personal assets. Without a succession plan, the company’s future, assets, and legacy are potentially at risk, regardless of who handles the business when an owner retires.