Sometimes it's all too easy for a small business owner to get caught up in the daily operations of their company. Other owners might tend to focus only on their successes and how to turn those events into even greater successes. While it is very important to address daily operations and it's always great to realize accomplishments, it is also important to put foundational components in place to protect one's company in case of an adverse event.
Work for the Best, Prepare for the Worst
When running a small business, it's naïve to "hope" for the best. That's why successful small business owners rely on hard work to further their goals. If a business owner wants to protect their success, they will recognize the value in preparing for the worst as well. A business owner may experience a severe illness or have a serious accident, leaving them unable to lead their company. Even if a business owner manages to lead a healthy life until retirement age, they still need to determine what they would like to do with their company at that time. Some may decide to sell, but many others want to pass down their business to family members.
Protect a Small Business with a Family Trust
Protecting a small business for generations to come starts with building a solid foundation, backed by documents that will pass legal scrutiny. That's why anyone desiring to leave their small business to family members will want to take a close look at family trusts -- an essential, long-term business planning tool. With a family trust, a small business owner can breathe a sigh of relief, knowing they have an effective "insurance policy" if the worst should happen. A family trust offers benefits such as providing a clear avenue for transitioning a small business to beneficiaries at a designated time, yet it also allows the owner(s) to remain fully in control of their company until they choose to relinquish control.
If you would like to know more about how to pass on your company's assets to the next generation, please contact us!