It’s the nature of small businesses that the personal estate planning of the owner and the succession planning for his or her business are intertwined, says Karen Reynolds Sharkey, a national business owner strategy executive at U.S. Trust.
“Business owners are always focusing on the day-to-day activities,” she says. “A lot of the owners do not want to think of their own mortality. But if they plan early, they can have control over the outcome.
“Remind them to think about their employees and management team,” she says. “Those people are relying on the business owners to help protect their families, too.”
Each business owner should also be advised to rely on a team of professionals to help plan the destiny of the company, including financial advisors, attorneys, CPAs, business consultants and valuation experts, adds Barnum.