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Succession plans are a must for all small businesses

Small businesses often hinge on the decisions of one person, the business owner. When you are the person who owns the business and are the only one who decides everything about the business, you need to think about what is going to happen when you pass away.

Making a succession plan might not be what you'd consider a fun thing to do or even something on the top of your list. It is imperative that you take the steps to get this done because you simply don't know when something will happen to you.

One thing that many business owners don't think about is discussing the plans with the people who are going to have to take over. You can let them know what the plan is now and what they will be expected to do. Go over the succession plan with them and make sure that they fully understand it. Since you are here, they can ask questions if they need anything clarified.

Depending on the financial state of the company, you might have to think about some financial matters. This is also going to depend on what plans you are establishing for selling or transitioning the business. If the succession plans will require someone to obtain funding, it is best that they know this now so that they can prepare for it.

You shouldn't ever assume that your children will want to take over the family business. This might not be the case, so it is best to talk to them and find out what their thoughts are since this can help you to determine your path.

Source: Entrepreneur, "Now Is the Time to Think About Your Small-Business Succession Plan," Stephen Sheinbaum, accessed Oct. 11, 2017

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