Make sure to plan for what will happen to your business when you retire. Maybe your partner wants to buy you out, or you want to pass the business to your heirs. If you plan to sell your business to outside investors, you’ll need to get a valuation. Include any consultation fees if the new owner requires assistance during the transition.
Regardless of how you plan to transfer your business to new owners, consider how you’ll receive payment for your ownership. Will it be a single lump-sum payment, or will you receive monthly payments?
Your succession plan isn’t just for retirement. It’s also useful if you become ill, injured, or worse. And remember, your succession plan isn’t something you create and then forget. Situations change, so review your plan each year.