As the owner of a garage and auto body shop, you have a number of responsibilities. While you may be focused on your trade and the work that comes with it, it is important to not forget about the logistics. This week, we would like to take a moment to discuss succession planning and what it means for your business.
So, what is succession planning?
Succession planning is the act of creating a structure for transferring business from one owner to the next. In essence, it brings together a number of critical players in the business, from the owners to partners to key employees and even advisors.
Why is succession planning important?
Succession planning is important; especially at the very beginning of business stages (remember the three that we discussed last week? It begins with an examination of financial, operational and even personal issues within the business. Once all three are looked at, the end result is a succession plan. The benefits of this are endless, including:
- Improved operations (day-to-day and overall)
• Boosted profitably and overall growth
• Stronger relationships between everyone involved
At the heart of succession planning, there is also a buy-sell agreement. It is important that the person who is determined to take over the business has the proper funding and plan in place. A buy-sell agreement can help create a smooth transfer and transition for those who will remain active in the business.
As you can see, ensuring a smooth transition is critical as garage shop owner. Sure, you may only be getting started and are not thinking so far in advance but planning in advance is STILL important. If you have any questions or concerns about succession planning or even buy-sell agreements, do not hesitate to reach out to us at Wolpert Insurance. We work with trained partners ready and waiting to answer all of your garage insurance questions and concerns.