Succession Planning for Your Business


For this week’s segment of “notes from the networking event,” I listened, learned and sat 083267fin awe of the knoweldge of Andi Augustine of Windsor Financial Group.   She answers the question of “how well are you protecting your busienss for the long-term?”

What is succession planning?  Well simply put, succession planning is the process of determining how you will pass along your business to the next owner or how the business will be run in your absence.  You want to make sure that given an emergency your business is still able to function and have a team in place providing stability to your employees and clients.  Additionally, if you plan to sell the business or pass it along to your children how does that desire fit into other retirement planning with your estate and income needs?

Andi, well-versed in this area of succession planning shared a wealth of information about the process to protect yourself, the empire you are building and of course your loved ones.  Here are her best tips:

  1. Craft a Succession Plan – only 25%
  2. Draft a buy-sell agreement that protects against the 4-D’s (death, disability, divorce and departure).  Yikes, those do not sound good.
  3. Know how your business is going to run in your absence.
  4. Know the value of your buisness.
  5. Ensure there is sufficient funding to protect the business and the owner.
  6. Ensure that retirement is not dependent upon the sale of or receiving income from the business.
  7. Think ahead about finding a successor/buyer for the business
  8. Do the proper estate planning
  9. Address any family business issues
  10. Effectively utilize your team of advisors

Over the past year I have had the great pleasure of getting to know Andi both personally and profesionally.  With me she shares the core value of family and when she talks about her profession you can hear and feel her passion to help you plan.  She wants to help you prepare to alleviate unneccesary stress should an unfortunate event occur.

I will say that I have watched many presentations…Andi has a great handout.