| For many people, succession planning
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| | assume, like most small and emerging
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| consists of placing personal property in
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| | businesses that we have a situation of
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| joint tenancy, executing a will, and
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| | family involved:What are the retirement
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| buying some life insurance. These
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| | goals of the current owners (timing and
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| measures taken by themselves may not be
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| | required financial compensation)?Which
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| very effective for the owner of a closely
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| | option makes sense: Sell to family, sell
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| held business.Many business owners are so
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| | to an outsider or liquidate?What is a
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| focused on the daily operational concerns
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| | fair market value of the enterprise?What
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| of running a business they do not take
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| | do I do about heirs that do not or will
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| the time to plan for the transition of
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| | not participate in the business?Does it
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| their business assets. Consequently,
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| | make sense to designate heirs a number of
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| succession planning is not done, is put
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| | years ahead of the transfer?If family
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| off until retirement is imminent, or is
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| | members are buyers of preference, to what
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| rushed into in a crisis.Waiting too long
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| | degree do they get a "break" on buying
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| can be a serious problem for the company
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| | the company?Have family members received
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| and/or intended heirs. Options could be
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| | appropriate and adequate training in
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| reduced or no longer available because of
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| | management to take over either as
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| bad timing. Failing to provide for an
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| | managers or owners?How can a sale be
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| orderly transition is one of the top
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| | structured for minimum tax
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| reasons for bankruptcy in small
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| | consequences?How do I protect the
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| businesses that were, before an unplanned
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| | Succession Plan in the event of the
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| ownership change forced the issue,
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| | untimely death of a key owner or a
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| operationally successful.There is no
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| | preferential heir?Engaging Your
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| specific time in the history of a closely
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| | Professional Resources:What is apparent
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| held company when succession planning
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| | from this list is that succession
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| should begin, but the earlier the
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| | planning is not a casual exercise that is
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| question is faced, the better the result.
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| | engaged in one year before retirement. It
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| In a family operation, the Succession
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| | requires the formation of a business
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| Plan can provide a firm foundation for
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| | "team" consisting of current owner(s),
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| orderly transition, provide confidence in
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| | key family (particularly the likely
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| management and relieve owners of a
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| | heirs, if any), your tax accountant and
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| potential burden.The worse strategy for
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| | your corporate attorney, among others. If
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| succession planning is doing nothing at
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| | you have a Board of Directors or Board of
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| all. This is the best way to create havoc
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| | Advisors they should read on your
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| and often has been the demise of an
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| | succession plan also. They can provide
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| otherwise healthy company. In the event
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| | valuable independent experience on key
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| of the death of the owner(s) without a
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| | questions that you may have in this
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| funded and protected succession plan,
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| | area."Failing to Plan is Planning to
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| chaos ensues, the government is often the
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| | Fail." Effie JonesRobert A. Normand is
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| heir of reality and family life is
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| | Executive Director of the Institute for
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| bitterly interrupted. Insurance helps but
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| | Small Business Management ( and author of
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| is certainly not the whole answer;
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| | "Entreprenewal!, The Six Step Recovery
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| planning for managerial succession is
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| | Program for Small Business" ( Mr.
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| still a great question that must be
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| | Normand has served as principal
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| addressed and answered.The Stages of
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| | management consultant for more than 100
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| Company Growth:The process of building a
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| | businesses ranging from $500,000 to
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| company proceeds as follows:1) Initial
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| | $50,000,000 in annual sales and has owned
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| start-up period (also called
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| | and operated several small businesses of
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| "Survival")2) Building Value Period3)
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| | his own in diverse industries. Mr.
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| Developing a Self-Sustaining
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| | Normand's small business philosophy is
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| Organization4) Providing for an Orderly
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| | premised on the belief that small
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| Transition to New OwnersCertainly a
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| | business management skills can be
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| Succession Plan needs to be in place by
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| | developed by busy entrepreneurs using
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| Stage 4 and would be logical to have by
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| | readily available information, tools and
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| Stage 3 (otherwise it can't be
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| | procedures not found in business schools
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| "self-sustaining") but is definitely
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| | or formal degree programs. He can be
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| preferable to be in place during Stage
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| | reached by telephone at 941-330-0889 or
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| 2.Key Succession Planning Questions:The
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| | by mail at 3751 Almeria Avenue, Suite A4,
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| major questions that must be faced in a
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| | Sarasota, Florida 34239.
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| succession plan include (and here we
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