Q. I own a small business, how should I approach the exit plan?
A. According to a LIMRA survey, 76% of small business owners understand the importance of having a business succession plan; yet only 35% actually have a plan in place.
To get started, every business owner should ask the following 3 questions:
1. What's my exit strategy?
2. Is it in writing?
3. How is it funded?
If you are a small business owner and want to have a free review of your trusts, buy-sell agreements and other advanced planning materials, please contact us, we will find an expert to do it for you at no cost.
A. According to a LIMRA survey, 76% of small business owners understand the importance of having a business succession plan; yet only 35% actually have a plan in place.
To get started, every business owner should ask the following 3 questions:
1. What's my exit strategy?
- If the answer is I don't have one, it's time to develop one now.
- If the answer is I already have one. move to question 2 below.
2. Is it in writing?
- If the answer is No, then there is a potential problem because handshakes or gentlemen's agreements are not generally enforceable in the court.
- If the answer is Yes, move to question 3 below.
3. How is it funded?
- If the answer is No, then it's time to develop a funding strategy.
- If the answer is Yes, then review if it's out of date.
If you are a small business owner and want to have a free review of your trusts, buy-sell agreements and other advanced planning materials, please contact us, we will find an expert to do it for you at no cost.
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