Succession planning for businesses of any size and ownership type is vital for long-term sustainability and success, yet is one of the toughest challenges businesses face. Only 30 percent of family or closely-held businesses survive into the second generation, and this failure is directly tied to a lack of family business succession planning.
Formally, succession planning entails three aspects: management, ownership and taxes. More specifically, first generation owners need to plan for who is going to run the business, who will own the business and how to keep taxes in check.
Here are 4 tips to get the succession planning process started for your family or closely-held business.