small business succession plan

Episode 020: Create Your Business’s Succession Plan

Last week’s challenge: Tidy a Room in Your Space

Last week we welcomed Natalie’s sister, Bethany, to the podcast and she provided our challenge for the week. And that challenge was to tidy a room in our place.

Some people think that cleaning up a space in their place is an all-day chore, one to be loathed and feared. We debunk that myth right quickly in this episode. Natalie and I probably spent a couple hours each re-organizing our spaces and purging possessions from our lives.

Cleaning and reorganizing one’s space can be very therapeutic. Our hobbies and work life are made easier and more accessible when we can find the things we need. It’s also a weight off our chest, allowing us to focus better on what’s really important.

Natalie talks about her hoarding lifestyle in which she takes all of her creative supplies and donated it to a non-profit that provides low-cost art classes for children. Dawww. She’s pretty darn awesome, isn’t she? I’m pretty darn impressed.

This week’s challenge: Create a Succession Plan for Your Business

Death, it happens to almost everybody at some point. For those who never die, like Frank Dracula or Jimothy Christ, the distance 40th cousin of Jesus Christ, they probably don’t have to worry about a succession plan. What about the rest of us?

Well, it takes some planning. While the act of creating a succession plan is a big task, no doubt, it’s not something that any of us can expect to pin down in just a week. What we can do is outline what we want to happen in the event of our unexpected demise. That’s the goal this week!

Planning for what happens with your business after you’ve passed on to the great beyond is an essential piece of running a business—yes, even for a small business. By starting with an outline you can build in a process that helps your business either transfer to new ownership or responsibly closes the business down (paying off debts, taxes, and resolve paperwork).

Again, we’re just outlining what we ideally want to see happen when we pass. So don’t go all Rambo into this challenge. Keep it doable!

Things to think about

  • Do you want to close the business down or hand it off to someone?
  • How will you pay off your debts and other financial obligations?
  • How will you pay off your taxes?
  • How will you minimize your taxes?
  • How will you transition your customers and clients to another business? Will you?

Show Notes:

  • 4:03 — Natalie and I talk about last week’s episode with Bethany and her challenge of tidying up a room or space in your home or office.
  • 10:50 — We hop into thinking about creating a succession plan for our small businesses. Alex notes that 98% of people die some day. Death is a big thing.

As always, don’t forget to leave us that gushy 5-star review on iTunes and what not. And remember, kids, keep it simple and most importantly Keep it Doable!

Photo by Laura Skinner on Unsplash

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