There are many common business succession mistakes people make. Reliance on these preconceptions can result in increased costs, time and aggravation to those who are or will be involved in the management of your business. It could result in the loss of the business.
The most common of these are:
- I have plenty of time to deal with it.
- I have more important things to do, such as running the business.
- I know the true value of the business.
- Management should be determined by family birth order or gender preference.
- I don’t need to put my wishes in writing because my family knows what to do.
- My attorney knows that my accountant and financial planner are doing.
- There’s plenty of cash flow to pay future expenses.
- My employees will be happy to work for those who inherit the business.
- Succession planning only occurs when I die.
- The business will be better off if I remain in control until I die.