You’ve dedicated your life to building your business from the ground up. It’s hard to imagine the day you will walk out the door and turn the keys over to new ownership – but that day is inevitable. The decisions you make today regarding transitioning business ownership will affect the health of your company in the future. They can also have a significant impact on your personal wealth and tax liabilities.

There are a number of reasons why business owners fail to prepare for ownership transition. You might be used to a generous salary and good benefits and want to be sure you are comfortable when you retire. In addition, you are probably emotionally attached to your business – not only does it give you financial stability, but it is an integral part of your identity. So it’s no surprise you might be afraid your quality of life will be significantly affected by such a huge change in your life. Other common fears that business owners often face as they approach retirement include:

• Fear of death
• Reluctance to relinquish power and control
• Fear of boredom or being “shut out” of the business
• Loss of benefits or gaps in personal health insurance (the owner might not be ready for Medicare)
• Loss of income
• Loss of status and prestige
• Fear that the business will not survive
• Fear that employees will not be taken care of
• Fear that successors are not capable or ready to take over the business

These are all legitimate concerns. However, through careful planning, Prairie Capital Advisors, Inc. can make a significant contribution to the effort that can ensure your business will not only survive, but prosper – and your livelihood will be well taken care of. An effective succession plan can take years to execute, which is why it’s never too early to start planning for business ownership transition. By preparing a succession plan while you are still actively involved in the business, you can determine the level of control you will have in the business after you retire and ensure your business will continue to support your family and employees.

Don’t let your fears get in the way of preparing for business ownership transition. Even if your retirement is years off, it’s critical to assemble the right team of advisors and start planning for leadership transfer now – or you risk losing the financial stability you have worked so hard to achieve. The experienced professionals at Prairie Capital Advisors can help you not only secure your personal wealth, but ensure your company’s prosperity for years to come.