Success in business requires planning, commitment, and a strategic approach. Many new businesses take at least two or three years to turn a profit and twice as long to truly hit their stride.
If you’ve created a business, you know that success doesn’t happen overnight. But do you know what will happen to your business if something unexpected impacts you or when you decide to step away?
You will exit your business at some point. Planning for that moment now by incorporating the business into your estate plan can help to set up you and your family for a successful next chapter. Succession planning is more than contingency planning — it’s part of a growth strategy.
Many business owners become focused on short-term priorities associated with their day-to-day operations at the expense of planning for future succession, according to a 2024 survey from Edward Jones.
More than half of U.S. business owners are over the age of 55, and the average age at which owners plan to pass on their business is 63. As they near retirement, these entrepreneurs are priming the country for what Edward Jones calls a “business succession boom” in the coming years.
Only two-thirds of business owners, however, have prepared a business succession plan. The one-third that have yet to create a succession plan say they don’t view it as a priority, citing uncertainty about the future of the business (32 percent), uncertainty about where to start the planning process (32 percent), and an inability to identity a successor (26 percent).
Find out more of what can happen if you fail to plan.
If you are a business owner and would like some direction on succession planning, give our office a call at (605) 275-5665.