Similarities Between Life Insurance And A Succession Plan
Another year is coming to an end and a new one is just around the corner. In business, it is common to look forward to the new year with optimism as well as some mixed anxiety.
There are thoughts about how your franchise operation will be impacted. Growth, unemployment rates, the economic environment, and in some instances, changes in the political environment are common concerns for multi-unit franchise owners.
We also find multi-unit franchise owners looking at areas of strategic planning and overall business performance, but rarely are there questions around succession planning. Not because there is a lack of need or they don't want to engage, but many multi-unit franchise owners do not even realize the importance of having a plan in place. Moreover, we find that once we have had the chance to educate owners that succession planning does not mean the end and that it helps protect their business, family, and legacy into the future, a lightbulb goes off.
An analogy I like to use is that of life insurance and having a will in place. We are healthy and vibrant and living life and the last thing we want to consider is our own death. However, we also know that if something should happen to us, we want to make certain our family is taken care of and our intentions clearly laid out. We do not want to leave any financial burden or confusion as to what our wishes are for our assets and business.
Succession planning is often feared as complex simply because it is a process involving a variety of interdependent areas. In order to achieve your succession goals and ensure the future of your family and business as you intend, it is important to understand and address each of these interdependent areas. To keep from getting overwhelmed, take a step back and look at how you can protect your family, your business, and the future of both, just as you do with life insurance and getting your will completed.
For example, there are multiple steps you must complete to ensure you have the right level of life insurance and you are approved. Establishing your will is a bit more intensive in that you have to consider so many aspects of your personal and professional life. Neither are things which are completed quickly, nor in an isolated fashion. They take time, intentionality, and thoughtful consideration. You rely on the experts in each of their fields to guide you through the process from beginning to end. When you compare succession planning to this process it really makes the complexity of succession planning very simple.
We can work with you through the process of succession planning, navigating you through the ten interdependent areas of the Succession Matrix. We can help ensure your wishes are met for the sustainability of your business into the future, the financial well-being of your family, and protect the legacy you have built, long before you exit the business.
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