As Wisconsin entrepreneurs turn their minds to retirement and succession planning, there could be some important considerations to keep in mind. There are over 12 million businesses in the country owned by members of the baby boom generation, now approaching or over the standard retirement age. Transitioning away from business leadership can take a number of forms depending on the vision that an entrepreneur has for the future of the company.
For many dedicated small business owners, retirement can be the furthest thing from their mind. Many do not want to think about retirement when they have played such a major role in shaping their company to fit their vision. However, succession planning can play an important role in assuring financial security in retirement and allowing family members to have a clear understanding about the future of their finances. Business owners can work with lawyers, accountants and other professionals to develop a clear plan for the future of their enterprise.
When considering the future of the business, some owners may want to think about passing the enterprise on to a family member. In this case, the business itself would remain in family hands. However, when passing the business on to a family member, it can be important for the original owner to set up a revenue stream that can be relied upon for retirement income. Other owners may choose to sell their business to another company or investor. The new windfall can be set aside as a retirement investment, a trust fund or a philanthropic activity.
Transitioning in or out of business ownership can be a major life change with significant legal implications. A business and corporate law attorney may help entrepreneurs prepare the necessary documents to develop the structure of their business as well as organize contracts and other major transactions.