Why it’s crucial to have a business transition plan

In 2016, the American Institute of CPAs (AICPA) published a survey conducted by the Private Companies Practice Section (PCPS) and Succession Institute LLC. In the report, the PCPS states that less than 10% of sole proprietors and only half of multi-owner firms have a business transition plan in place. Whether you feel ready or not a business transition plan can safeguard your business and give you the power to create a smooth path for your successors. The more thorough your plan, the better.

The vast majority of businesses in the United States are small businesses, and many of those are family-owned operations or partnerships. Unlike large corporations, small businesses without a proper business transition plan often fail when the owner or a senior-level partner retires, becomes incapacitated, or dies.

Here are six steps every business owner should consider when developing a business transition plan.

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