After years of building and running a successful business, deciding when and how to step back can be daunting, especially for those without a clear future plan.
Succession planning is a significant transition for anyone, but it presents unique challenges for business owners. After years of building and running a successful business, deciding when and how to step back can be daunting, especially for those without a clear future plan. Over one-third of small business owners and entrepreneurs have no retirement savings, with 12% believing they will never retire, according to SCORE.
For business owners – those who built businesses rather than inherited them from their family – succession planning is not just about stepping away from the day-to-day operations of their business, but about transitioning from a life defined by business success to one that encompasses a broader spectrum of personal fulfillment and legacy building. It requires careful consideration of how to preserve the business’s wealth and legacy while embracing new opportunities for personal growth and exploration. This shift often involves deep emotional and financial planning, as the lines between personal identity and business achievement are intricately woven.Planning Ahead
“Succession planning is more than a contingency plan; it’s a growth strategy,” states Bobby Mefford, CRPC, owner of Mefford Wealth Management. “Initiating this process well before the anticipated need, ideally 5-10 years in advance, allows business owners to meticulously craft a roadmap that aligns with both their personal retirement aspirations and the business’s growth objectives.” It’s important to integrate succession planning into the broader business strategy to establish a clear vision for the company’s future.
