More than half of the small businesses in Maryland do not have a proper plan in place should the owner become disabled or pass away. Now that so many businesses are struggling due to the pandemic, it is more important than ever to have a proper plan in place for the future of the business.
Prior to creating a business succession plan it is helpful to consider the following issues:
Candidates: Are there employees or family members interested and capable of taking over the business? Grooming this person or team as soon as possible helps to ensure they develop the skill sets needed for a smooth transition when the time comes.
Skillsets: Skillsets is the next area to consider. Make a comprehensive list of skills needed to hold an executive position in the business. Some of those may require competency in finances, marketing or some other specific industry knowledge like healthcare or technology.
Day-to-Day Operations: Draft essential and non-essential operations and processes in a written format that can be accessed when needed to facilitate a smooth transition. This will likely include a list of vendors, customers and suppliers. It will also include human resources within the company such as employers and contractors.
Intellectual Property:Keep detailed records of all the intellectual property owned or pertaining to the business. This may include trademarks, copyrights and patents.
Even if you do not have immediate plans to retire or sell the business, it will have to transition to someone at some point. That could be someone who purchases the business or it could be that you transition it to family or some other trusted employee. In order to stay in control and be a part of the process you should consider all the items mentioned above carefully and work with an experienced attorney to develop a business succession plan. You will also need a coordinated personal estate plan that aligns with the goals of the business succession plan.
To get started on this process, contact the experienced attorneys at Stouffer Legal in the Greater Baltimore area. You can schedule an appointment by calling us at (443) 470-3599 or emailing us at office@stoufflerlegal.com.
