What are some common obstacles encountered in creating a succession strategy?
There’s no doubt that when creating a business transition plan, there’s a lot at stake. That fact alone can be an obstacle in creating a strategy. Some business owners can become overwhelmed when thinking about the process. Communication can also be an issue. It’s important that all involved clearly express their wants and needs regarding the future of the business. The impact of estate taxes and other taxes can also enter the picture when you’re creating a strategy. For these reasons, it’s wise to work with a team of professional, impartial advisers who can approach the process from a range of perspectives. If the business is family-owned, one way to avoid an obstacle is to devise a plan that preserves goodwill and fairness among the children, or the next generation. Such a strategy would focus on being equitable, as opposed to being equal, to all involved. Finally, failure to create a plan is likely the biggest obstacle. Without a sound business transition plan, the future success of
