3
STEPS BUSINESS OWNERS SHOULD TAKE PRIOR TO
SUCCESSION PLANNING BY MARK LEYDEN, CLU®, CEO & FOUNDER, MARK LEYDEN & ASSOCIATE
This is the second in a series of four ar ticles discussing considerations around succession and continuity planning for family businesses leading to how life insurance strategies are utilized
Professional EOS Implementor. Hutson routinely works with family-owned businesses to help them align operations to reach defined goals. “There are two components in any vision for the future – a business part and a family and personal piece. The owner must decide what they want to get out
to achieve many of the goals for such
of the business for themselves and consider how
planning. This ar ticle discusses the
this impacts the future of the business, which may
first 3 steps a business owner should
include other family members.” Check out Mark’s
under take when beginning the process.
previous article: Create a Formal Business Succession
M
any business owners today simply do not adequately plan their succession. Reasons
Plan in 7 Steps DEFINE THE VISION OF THE FUTURE OF THE COMPANY AND AN OWNER’S INVOLVEMENT
for procrastination vary and include not wanting
The process must begin with the owner having an
to leave or let go, not wishing to face their own
honest conversation with themselves. How long
mortality and an apprehension about creating
does the owner want to stay in the business, either
family disharmony with tough discussions and
running it or in some other capacity? By answering
decisions. In effect, most justifications for not
this question, the owner can first consider their
planning an exit are emotional, and a business
own needs and how long the business might satisfy
owner must set aside emotion and plan strategically.
those needs – financially and otherwise — as the
“The owner must have a clear vision of where they are going and how they are going to get
first building block in planning. A family business owner must honestly and
there,” says Mike Hutson, CPA, CEPA, the Founder
accurately answer these four questions to set the
of Edge Business Strategies in Indianapolis and a
rest of the foundation for a succession plan:
2 2 NORTH AMERIC AN S WE E P E R S EP T EM BER 2020
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