TOM DERKACH, CFP, FMA © 2022 HA Photography
VANCOUVER ISLAND – As an entrepreneur, your business is both the source of your income and the store of a significant portion of your wealth. That adds a layer of complexity when it’s time to hand off your years of hard work. To get started on a succession plan, ask yourself these questions:
Do you have a written personal financial plan? If parts of your personal finances are tied to the business, what do you need from the business to meet your needs?
How much of the value of the business is tied up in your expertise? Is your business self-sustaining without you?
Who are the key people in your organization? If they leave, will they take critical knowledge and skills needed by your business?
Do one or more of your family members want to take over the business? Do they have the skills, time and desire?
Have you determined the value of your business? Business valuation can be a complex endeavor.
Have you allowed for the time it takes to transfer a business? Do you need to groom a successor or have a more formal due diligence process with legal and accounting advisors? A documented plan will help smooth the way.
Have you thought about a long-term investment strategy? After you sell your business, what is the best investment for the sale proceeds, from a time horizon, risk and tax standpoint.
And finally, have you considered an estate plan? Get tips here on how to create an estate plan that protects your business, family and business partners.
A great next step is to talk to an expert. Please call me at 250.729.2558 if you would like to learn more about what Coastal Community Private Wealth Group can offer.
Tom Derkach, CFP, FMA, is Assistant Vice President and Private Wealth Advisor with Coastal Community Private Wealth Group and Investment Advisor with Aviso Wealth.
Coastal Community Private Wealth Group is a division of Coastal Community Financial Management Inc., which is a subsidiary of Coastal Community Credit Union. Coastal Community Financial Management Inc. is a licensed life insurance agency offering financial planning, life insurance and investments.
Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc.
