Succession Planning for Small Business Owners
On this episode of A Wiser Retirement Podcast, Casey Smith and Brad Lyons, CFP® are joined by Gary Bottoms, CLU®, ChFC®, who is Chairman and CEO of The Bottoms Group, LLC and author of Getting it Right: 10 Strategies to Avoid Regrets. Gary is also a Principal of TBX Benefit Partners, a subsidiary of The Bottoms Group. They talk about succession planning for small business owners, developing a family mission statement, having a mentor, and leaving a legacy.
Plan Ahead for Your Business
The biggest pitfall of a business is often lack of communication. Healthy communication will allow you to face issues head-on and look toward the future. Additionally, it is important to make plans for your business once you can no longer run it. Whether it be selling your business or passing it down to the next generation, always have a plan.
Succession Planning for Your Business
It may be difficult to pass a business down to the next generation because of its complicated inner workings. The best thing to do is to get out of the office and think about what you would like to do; it takes time to formulate a plan. Teach the next generation how to manage the business and to always strive for higher. This will allow you to be proud of the legacy you and your family leave behind.
Develop a Family Mission Statement
Come up with a family mission statement that is unique to your family and the legacy you hope to leave one day. Describe the kind of family you want to be and think of attributes you would like show the world. This will help you to identify your goals as a family and strive for them every day. It can also help to leave a legacy; the next generation can see what you have accomplished and the steps for success.
Have a Mentor
Find someone to mentor you who is more experienced and maybe even has a similar career. A mentor can help you see the positives of your industry. They can help you through challenging times and give you advice when needed. Look for someone who will consistently challenge you to think through your decisions. This will help you to stay focused and grow your awareness of your challenges.
Is buy term, invest the difference a good strategy?
It all comes down to how long you would like your insurance to last. The answer to this question depends on your situation. This tactic doesn’t always work so be careful!
Download our white paper on “7 Steps to Leave a Financial Legacy”
1:30 About Gary’s Book: Getting it Right
5:46 Plan Ahead for Your Business
12:06 Succession Planning for Your Business
14:32 Develop a Family Mission Statement
18:02 Have a Mentor
26:02 Is buy term, invest the difference a good strategy?
34:41 The Importance of Financial Education
Learn more about Casey Smith and connect with him on Twitter.
Learn more about Brad Lyons, CFP®.
Learn more about Gary Bottoms, CLU, ChFC.
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