Why You Need a Business Succession Plan

succession plan

What is your succession plan for your business?

One of the reasons I love working with business owners is that I am one. That’s why I’m passionate about bringing things to my clients’ attention that is really important for them to do but, for some reason, gets put off—often until it’s too late. This involves more than just retirement income planning.

It involves developing an exit strategy for your business. Succession planning goes right along with that. And both of these are topics we know we need to take care of but it’s hard to get around to actually doing it.

Personally, I’ve been worrying about this since I turned 55. But worrying about it didn’t get me anywhere. The thoughts that haunted me were, “If anything happens to me, my clients will scatter and my wife will not reap the rewards of my many years of hard work.” That thought plus seeing what happened to so many business owners who waited until it was too late to plan spurred me into action.

The first thing you have to realize and get comfortable with is that planning—the right kind of planning—takes time. If you’re looking for someone to take over your business, you have to be judicious and find the right person. You can’t just assume that person will show up when you need them.

For me, it also meant helping a young person stay on track to fulfill his own dreams. You see, I met these two young guys through a third party asset management program. I was at their firm doing a client review. One of them was particularly impressive. He had earned his CIMA and his CFP and had graduated top of his class from Amherst.  I found out this very talented young guy was about to give up everything he had accomplished to go into the FBI.

You see, he felt some pressure to go into his family’s business tradition. His father is in the DEA and everyone—his cousins and everyone else in his family—is involved in some type of law enforcement. But his passion lay in the asset management industry. Not only that, but his wife is a CFA and also manages money.

Yet he had already decided to abandon that passion…until I talked to him about taking over my business one day. I have an established business and I was looking for a succession plan. He loves the business but was giving up his own dream to live someone else’s.

Now, we’re both excited about our respective dreams coming true. Don’t leave the legacy you’ve worked so many years to build to chance.

You can reach me by phone at 732-974-6400, or you can email me personally at tom@froehlichfinancial.com.

Image courtesy of David Castillo Dominici / FreeDigitalPhotos.net

Topic: Succession Plan

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About Tom Froehlich

Tom Froehlich has been helping business owners, professionals, and their families to build, transfer, and preserve wealth for over 25 years. Have a question about your financial situation? CLICK HERE TO ASK TOM!

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