1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

A Plano Business Attorney’s Quickstart Guide to Succession Planning (Part 2)

Plano business attorney, Richard “Ric” Armstrong, offers insights about how to plan for the future of your company.

When should you dream up a succession strategy for your business?

The short answer is “sooner than later.” By the time you actually need to enact a plan, it could already be too late. Even if you don’t aim to retire or sell for decades, address contingencies now. Knowing the endgame will give you flexibility, allowing you to detour from your map to take advantage of opportunities and/or avoid annoyances that appear along the way.

For instance, if you know you want to systematize and sell your web design business within 10 years in order to pursue your true passion as a fiction writer, then that end state should intimately inform your hiring, marketing and sales decisions. By drafting a succession plan—even possibly preparing detailed documents years in advance of needing them in practice—you will gain massive amounts of clarity. You’ll be more likely to put in place people, structures, documents and processes to get to where you want to be.

Questions to Ask in Succession Planning

To get your juices flowing, ask yourself the following:

1. Do I want to sell the business when I retire or die, or keep it in the family? (In other words, will the company sale just become part of your children’s inheritance, or will it be a continuing source of income?)

2. Whom can I see as a possible successor? (Is there anyone in your family? What about trusted employees? What about an out of the box choice, like a competitor you greatly respect?)

3. What are my biggest fears for the transition? What are my biggest hopes? (Get these out on paper. They’re already subconsciously informing your decision-making. Render these thoughts in ink, so you and a qualified business succession planning attorney can wrangle with them.)

4. How can I protect the company from excessive tax burdens during the transition?

5. How will the transfer of ownership be structured, and how can we make it as smooth as possible?

Succession planning is not a one-and-done situation; it’s an ongoing process that you’ll want to revisit with an attorney’s help. To start the process with an experienced Plano business attorney,

www.planobusinesslawyers.com

Richard L. Armstrong, Principal

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

Fort Worth Location (By Appointment Only)
5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297