As strange as it sounds, passing down your business is one of the most important business decisions you make. In fact, you should have a plan for business succession before your business even gets off the ground.
In order to decide which option works for you, you need to have a good understanding of all the possibilities. You can start by understanding some of the most common choices business owners make.
Selling to other parties
Fit Small Business discusses different ways you can tackle business succession planning. The transfer of your business can go down several different avenues. First, you have options that involve selling your portion or the entirety of a business. You can choose to sell to a number of different individuals, like a co-owner or key employee. You can also choose to sell to an outside party or the company itself.
Selling to co-owners and key employees gives you more certainty that your business will be in good hands. But sometimes, the price or responsibility of being the main owner is not one that these people want. You can get the money you need by selling to an outside party, but this introduces uncertain elements.
Passing the business down
Of course, you have the option of passing ownership of your interests on to an heir, too. Having a business fair gives you the benefit of keeping it in the family. You have a better idea of how it will run in the future. You also likely know your chosen heir well and can trust them to move things in the right direction. But it is sometimes hard to find a family member interested and willing to take on the business.
In the end, your choice depends on you. Consider contacting a legal expert who can act as a consultant as you make these tough decisions.