While it is never pleasant to consider the point in your life when you will be unable to run your business any longer, it is a part of life. Without proper planning, you could ruin the business you worked so diligently to build because you wanted to avoid thinking about the inevitable. Proper successor planning is the smartest decision any trucking business owner can take when it comes to running their business and keeping it running for many years to come. Accidents happen and illnesses occur; acting proactively to determine the fate of your business will ensure the continued success of your company.
What Is a Succession Plan?
A succession plan allows you to document exactly what should happen to your trucking company when you are no longer running it. This does not necessarily mean upon your death; a good succession plan is needed in the event of disability or even retirement as well. Your plan should also include where all of the assets of the company, including the money, should be distributed upon your leaving.
How Does It Work?
The succession plan is a guide for those who outlive or outwork you in your business. It is your opportunity to put down in writing exactly how you want business conducted, who should take over the business and how. A succession plan is a legal document that is upheld in court, similar to how a will works for your personal estate and belongings. Without a proper succession plan, the fate of your business could lie in the hands of the courts. Chances are if this occurs, the business you worked so hard on will not be a business for much longer.
Putting it in Place
The benefit of putting a succession plan together ahead of time allows you to think logically to determine who you want to run your business. Think about how you run your business and who would most likely do the same upon your leaving. If it is your wish for your company to become one that lasts through generations, you need to put careful thought into your plan. You will also need to determine how the assets are distributed. All of this requires careful thought and planning and needs to be put into writing. Consulting with a company that is experienced in successor planning for trucking companies is essential to the success of your plan.
To find out more about how successor planning could help your trucking business, visit Ahern & Associates at website
