How Succession Plans Help Mitigate the Risk of Business Failure

Businesses fail for a variety of reasons. In the case of a restaurant business owned by a corporation or LLC, one of those reasons is the shareholders’ or members’ failure to have a plan to replace the key decision-maker(s). Even successful businesses can suffer crushing losses while their owners figure out who’s in charge.

A good business succession plan can help mitigate the risk of that happening. And the owners and managers of corporations and LLCs need to plan for their business’ future—or face the possibility they may not have one.

What kind of company needs a business succession plan?Every business is different, as is every corporation or LLC that owns and operates a business. A company with one owner has different succession concerns than a closely held company with several owners. And a closely held company where all owners participate in management has different concerns than a closely held company where only one of the owners runs the business. All these…