Successful business owners do a lot of things well, and they make it look easy. This is often a sign of well-running processes and years of discipline. However, it can also be a trap for successful business owners who intend to pass their businesses onto their children or business insiders. While you may love the idea of keeping the business with someone close to you, you cannot let that love blind you to the realities of insider transfers.
Today, we’ll examine three things you should consider if you intend to pass the business to your children or insiders.
1. Financial independence must come first
Financial independence is the most important consideration for business owners as they plan for a successful future. However, it can also force you to make tough decisions about your business's future.
If you’re thinking about one day selling or gifting your business to a child or insider, it’s prudent to ponder how this decision can affect your financial independence.
For example, many business-active children and insiders don’t have the money you may need to achieve financial independence. This may mean that you must rely on promissory notes or consistent business success without you at the helm to attain financial independence. If your child or insider proves incapable of delivering, it could leave you in a financial undertow.
Before taking steps to hand the reins to a child or insider, it’s important to do two things.
Tech Wilmington: Upcoming Events Calendar
Staff Reports
-
Feb 12, 2025
|
|
Pet Pampering Options Grow
Samantha Kupiainen
-
Feb 12, 2025
|
|
Small Business Spotlight: Bookstore Fans Romantasy Flame
Staff Reports
-
Feb 12, 2025
|
|
Publix Confirms Upcoming Leland Store
Staff Reports
-
Feb 12, 2025
|
|
OPINION: Seeing Green: A Case For Community Collaboration On Parks And Green Space
Luke Waddell
-
Feb 12, 2025
|
The area was named Leland way back in 1897, but it only had between 1,000 and 2,000 residents on its official birthday in 1989, the year it...
"I think people want something that is far from reality to escape to, a story they can be fully immersed in, fall in love with characters, c...
"The decision to engage with partners in the New Hanover Healthcare Career Partnership is not only an opportunity but also a strategic imper...
The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.