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Why should you choose a business successor early?

On Behalf of | May 7, 2020 | Estate Planning

Georgia entrepreneurs have a lot of things to consider when starting their business. A succession plan may not be the first on your mind, though. After all, most business owners plan on running their business for a long time to come.

So why is it important to have a succession plan early? Why should you pick a successor sooner rather than later? Today we will take a look at this question.

Having a plan when life gets unpredictable

The Small Business Administration tells you what to know about your business succession plan. They also encourage choosing a successor as soon as possible. This is because life is unpredictable. As much as business owners want and hope to be with a company as long as possible, it does not always happen. What if you get sick or injured? What if you must take over caring for a loved one? There are some situations in life that force you to rearrange priorities. Your business may not always hold the number one spot.

Why choosing a successor early benefits them

It is also important to give your successor time before this responsibility. Taking over a business is a big deal. They will have to rearrange their lives to prioritize the business first. They cannot have other big engagements. The successor you have in mind may not want this responsibility. Rather than waiting until the last minute, try collaborating. Alert your potential successor early. That way, if they agree, you can involve them in the plan. If they disagree, you have time to find another.

Keep these things in mind. That way, you can streamline the process of creating a business succession plan. Try not to put it off if possible.