Planning for the Future of Your Business What Happens When You Die

Planning for the Future of Your Business What Happens When You Die Are you prepared for the future of your business? Do you know what happens when you die? If not, keep reading! Having a successful business is one of the biggest accomplishments you can ever have in life. But, it can still be taken away in a split second! As such, one of the best business decisions you can make is to prepare for the unexpected. You never know when your company may need to close its doors or, on a more serious note, when you may take your last breath. Its a grim thing to think about what happens when you die, but it is a possibility you cant rule out. Here are 3 things you can do to prepare your business for what happens after you die. 1. Establish a Successor A successor is someone who will take over the business after youre gone. This person typically assumes your role and responsibilities as well as any finances left in your name that are tied to the business. Your personal finances are not theirs unless otherwise stated when estate planning. There are a number of other reasons to be specific and clear when choosing a successor, though. Say you want your successor to be a child of yours but you have more than one child interested in leading the business. Say you have a few employees who would be great leaders to run the business, but at the moment there isnt a clear way to tell who would take over. It falls on you to offer the guidance thats needed to ensure a smooth transition. These are decisions you have to make sooner rather than later, considering you never know when your time will come. 2. Get a Business Partner Another way to ensure your business lives on long after youre gone is to get a business partner. This person will basically take over your side of the business in the event of your death. They may choose to bring on a new partner to fill your role or they may decide to do your job and theirs after you pass. Your business finances are also in their hands, which they can keep for themselves, donate, or invest back into the business. If you have a preference as to where your money goes, put it in writing to ensure things go as planned after youre gone. 3. Put an Employee Stock Ownership Plan in Place The final option you have to prepare your business for the event of your death is to create an Employee Stock Ownership Plan (ESOP). Such a structure puts all of the business funds that are in your name in the hands of your employees. It sets up annual contributions that can happen just once or over a set period of time, depending on the amount of money you have and the number of employees who have stock in the company. Be Ready for What Happens When You Die As much as you may not want to think about what happens when you die, its something you need to do as a business owner. Just imagine being an employee and having a job one day and then hearing the company is going out of business the next. Picture what it would be like to be a child thinking youll inherit your parents company only to have it taken from you. These are the things that happen when business owners dont prepare for the life of their business after their own life! They can significantly alter the course of your business or stop its progression altogether. For more important business tips and insights to be aware of, click here.