Author: Ryan Serrecchia
It takes a forward-looking individual to launch and build a small business—someone with a rock-solid commitment to investing time and money in an organization based on its potential for future rewards. So it’s a bit ironic that, according to the Small Business Administration, only 30 percent of small-business owners have done any succession planning, let alone sought out succession planning services, a strategy that can contribute to the ultimate value of their company. Owners tend to be so focused on the day-to-day requirements of dealing with clients and employees that they barely have time to plan dinner, let alone plan for the long term. But failing to appreciate the importance of succession planning can have a number of negative consequences. Uncertainty about who will eventually assume control can lower the value of a firm, while also increasing stress and forcing the owners to work longer than desired or sell at a less favorable price and decreasing personal wealth.