Business owners face a different host of challenges than those who don't own a company when it comes to retirement. Among many other issues, business owners must come up with a plan for the succession of their business. Our Legal Checkup for Nevada businesses asks business owners the specific questions that must be addressed in order to perform an assessment of your business' legal health. A plan for passing on your business is integral to its smooth operation upon your retirement or passing. For example, our checkup asks if you have established who the natural or preferred successors to the business ownership and/or management would be?
It's important that your children are involved in your business from a young age if you plan on having them take over. That doesn't mean your kids have to be there every day after school for hours, but it's good for them to have some knowledge about what you do on a day-to-day basis. Have them come with you to work occasionally and "shadow" you, so you can give them an idea of what running a business entails.
Preparations for having your child or children succeed your business isn't limited to the office. Talking to your kids about your experience as a business owner, the pros and cons and successes and failures, is a great way to keep the discussion open on a regular basis. Conversations such as this will invite your children to ask questions and keep everyone involved for the sake of the family unit and each member as an individual.
That being said, most parents know they can't determine their childrens' futures, and that it's best to encourage them to pursue different interests and possible jobs, which will provide them with the experience they need to succeed, whether or not they choose to work for the family business. Another point to keep in mind is to convey to your children that their employment (at your business) is a privilege and they will be held to the same standards as your other employees. Determining which child will be at the helm of the business and who will take more of a back seat is also necessary. Even though you can choose to have shared leadership if you wish, be aware that this option may lead to some problems- sibling rivalry, at the very least.
When creating a plan for the future leadership of the business you worked hard to build, be sure to speak with an experienced business succession planning attorney. If you have any questions or concerns regarding your business succession plan or lack thereof, contact the Nevada Law Office of Attorney S. Craig Stone at 877-905-0890.