Leave a Legacy
Kevin Spafford is Farm Journal’s succession planning expert for the Farm Journal Legacy Project. He hosts the nationally-televised ‘Leave a Legacy’ TV, facilitates an ongoing series of workshops for farm families across the U.S., and is the author of Legacy by Design: Succession Planning for Agribusiness Owners.
Succession Planning for Small Business Owners
Mar 07, 2012
From Legacy Moment (03/02/2012).
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The 2006 Hartford Business Owners Survey found:
- More than half of business owners agree that their business is their greatest personal asset and the primary source of family income.
- Only one-fifth of small business owners have drafted a legal agreement detailing their company’s ownership in case of marital dissolution.
- Only one-quarter of companies with fewer than 100 employees have key person insurance.
- Two-thirds of business owners worry about having enough money for retirement. About one-fifth of small businesses (those with fewer than 100 employees) offer a 401(k) plan.
- More than 40% of small business owners say their top long-term personal-finance concern is how to leave their business and realize the monetary benefits of their hard work.
According to the U.S. Small Business Administration, 90% of U.S. businesses are family-owned but only 30% of family-run companies succeed into the second generation. An even smaller percentage survive into the third.
A well designed comprehensive succession plan will address these issues and more. Have you taken the first step-- to sit down with the family to discuss your succession planning intentions and begin creating a lasting legacy? Start with the family meeting, use Conversation Starters and commit to action.
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