If you’re a small business owner, then you probably speak of your business and your life in the same breath. There’s nothing wrong with that. In fact, you are in good company.
All told, your business is one of the biggest challenges and accomplishments in your life. That said, it’s rare that the business is the only fulfilling thing in your life. In addition, do you really want to continue working in and on your business until the day you die, with no retirement or with old-age eventually getting in the way?
With your life and your business so intertwined, it makes it all the more necessary to plan properly.
The Wall Street Journal took up this matter in a recent article titled Preparing to Leave. I recommend this article to your reading list because it both warns of mistakes and offers solutions.
To whet your appetite, here are the “mistakes” identified:
- Creating a business that’s too dependent on the owner.
- Ignoring the tax benefits of planning ahead.
- Incorrectly valuing the business.
- Rushing to accept a rich number.
- Hiring your brother-in-law to do the deal.
- Underestimating the emotional impact of selling a business.
Like those old movie matinees, I am going to leave you pondering the solutions to these “cliffhangers.”
In the end, only you know when to hold’em and when to fold’em when it comes to the continuation of your business. However, don’t delay. You, your loved ones and others dependent on the business will be glad you didn’t.
Reference: The Wall Street Journal (April 29, 2012) “Preparing to Leave”
Patrick J. Kelleher is a South Shore, MA resident and estate planning attorney serving and protecting families and businesses in the South Shore, MA area. For more information on estate planning visit our firm’s website at www.MyFamilyLifePlan.com where you can check out our Blog, free Newsletter library, free Estate Planning Channel on Youtube and sign up for a Free e-Newsletter!
If you have any questions or would like to schedule a consultation please call Attorney Kelleher at 781-871-PLAN (7526) or by email at Pat@myfamilylifeplan.com
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This article is not intended to provide legal or tax advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney.