Your business was built on big dreams and careful plans. And there’s no reason to stop planning and dreaming when you begin to think about transitioning to a new generation. Together with your Farm Bureau agent, you and your business’ future owners can create a business succession strategy that suits your business, and its next steps.
Why Succession Planning is Crucial
A business succession plan is a series of financial and logistical decisions about who will take over your business upon retirement, death or disability. A business succession strategy helps ensure your business won’t have an interruption or won’t require your business to be sold off to an unknown party. Your business is your legacy – and you should have a hand in choosing your successor to ensure your vision lives on.
How Does a Business Succession Plan Work?
Business owners nearing retirement will evaluate the future of their business, and choose a successor, develop a buy/sell strategy, and provide guidance for continuing the operation. As a business owner, you should sit down with your chosen successor to talk about transition planning, and how involved you will be after you transition into retirement. Your transition can be as structured as you want it to be.
As a retiring business owner, consider ways to transition that will minimize your tax burden and manage debt. A business succession plan takes outstanding debt and lines of credit into account and provides information on how to manage debt repayment and minimize the tax consequences of any transfers of ownership. Having a plan in place aids in a seamless transition.
Your Farm Bureau agent is a crucial ally – while you are working on your business succession plan, consult your agent, who will be able to provide information about transition vehicles, and assist you with planning for the next steps of your business. I understands your business and is here to help you protect your vision – today, tomorrow and into the future.