Succession Planning is a service that is offered by certified accountants to business owners, but many of these owners do not know exactly what is succession planning. Brooksville business owners should be aware that one day they will not be able to run their business as they once did. In an instance where an owner would like to slow down and retire, they are going to have to appoint a trusted individual to take over the day-to-day operations of their business. This is individual is often called a successor, even if they are not related to the owner of the business. But why is it important to pick a successor for a business?

80% of First Generation Firms Never Make it to the Second

Picking a successor does not sound like an issue that is pressing as a business owner, but statistically speaking, nearly four out of five businesses never make it to the next generation. This is one of the main reasons why it is important to talk to a professional about succession planning. Brooksville business owners should be aware that most successors of a business are the child of the owner, but this does not always have to be the case. If your business is a partnership, it is also not uncommon for the junior partner to take over once the senior partner decides to settle down and possibly retire.

Do You Have a Plan?

Knowing that you need to name a successor for your business is a lot easier than sitting down with a professional and coming up with a plan for the transition. Naming a successor is not the same as going through the process of securing your business with the help of succession planning. Brooksville residents will have to go through all the proper legal channels and documentation in order to sign over their business to another successor.

*Disclaimer: The views expressed here are those of the authors and do not necessarily represent or reflect the views of Suncoast CPA Group*