Succession Planning for Small-Businesses

According to experts at MI&I (a subgroup of BMO Financial Group), small-business succession planning should take place five to ten years before the business anticipates a transition will occur. In reality, however, thanks in part to today’s economy, many small business owners are focused on everyday business operations and fail to invest the required time to develop a successful and comprehensive succession strategy.

The 20 million small U.S. businesses currently in operation employ half of the American work force. To help ensure these businesses continue to prosper for years to come, it is important that the small business owners make succession planning a top priority.

Succession planning options include selling the business, transferring the business to a family member or business partner, and dissolving the business. Small business owners should also consider speaking with a financial advisor when creating a succession plan to ensure that the plan will meet the business’s unique needs.  

See Amanda McGrory, Small-Business Owners Should Start Succession Planning Earlier, BenefitsPro, Jan. 24, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.