It’s been a busy summer, and a topic has been on my mind – reinforced by every report I hear about how many baby boomers are turning 65 every day. While we normally talk about life balance issues on this site, there is a business reality that also should be addressed, if possible, in a proactive manner. The same way that we prepare for the changes that will take place as we age by preparing our wills, funeral plans and the like, we need to consider doing the same for our businesses. And even when our businesses are covered, those we care for (or might need to care for in the future) also should perform those same tasks. Some refer to this as an exit strategy – and it might be just that. Or it might be a transition. Regardless, attending to this topic sooner rather than later will be beneficial.
Proactive business planning is critical.
Whether you are taking these steps for yourself or guiding your parents or others through the proceess, here are some topics to consider:
- What is the corporate structure of your business?
- How do you plan to transition your business when you no longer want to run it, or are no longer able to do so? (Will another family member run the company? Will you sell it, or close the doors?)
- What are the tax consequences to the transition you have planned?
- If you would like the business to continue, do you have an adequeate cutomer pipeline, staffing, insurance, and other day to day necessities in place?
- Have you protected the assets of the company – including tangible assets and intangible assets (like trademarks and patents)?
- If the business operates on line, have you made arranngements for the transfer and maintenance of the domain name?
What other issues would you add to this list? Proactive business planning can reduce stress down the road – which can be a big part of the balance we all seek as members of the sandwich generation.
