Statistics from the U.S. Small Business Administration indicate that more than half of the country’s small business owners are over 50 years of age. Out of that number, only about 30 percent have a written succession plan for their business, and this can pose severe problems for their heirs or other successors in interest. If you are in this situation, it is generally in your best interests to consult an attorney to cement your future.

No Successor?

No one likes to admit it, but if you have a dearth of heirs or business partners that you truly trust, or if finances are not what they ought to be, selling the business as a whole may be an option for when you step down or pass away. An alternative that has been gaining popularity in recent years is to sell your interest (presumably, your controlling interest) to your employees, forming a cooperative or creating an employee stock ownership plan (ESOP). The decision must be based on what is best for you and your family and your employees, of course, but selling to employees does have one advantage: they know your brand and your product. Many employers see this option as similar to giving the business over to family given the closeness involved.