Starting a business from scratch can be very exciting and at the same time terrifying for Nigerian entrepreneurs. Your business has every possibility of becoming a multi million Naira company provided you run your affairs in order.
Knowing this, there could be some fears concerning the future for your business. Hence, you would want to ensure that you have a business sustenance plan. One that ensures your business continues to flourish whether you’re around or not.
As a business owner, it’s quite likely that most of your wealth–and your family’s source of income -is tied up in your business. When you are no more, the sustenance of your family and loved ones is tied to the business, and if you fail to make adequate plans for your business to transcend to capable hands or a new management, you will have failed your loved ones. What better way to look out for your family than providing them a full-running enterprise.
If you plan properly, invest time and energy, your businesses can go on for generations. As a business owner, you should look through options like business planning and estate planning goals. For example, God is Good Motors was founded by late Edwin Ajaere who passed on in March 2009. As with many businesses, one would have thought that will be the end of his transport business, but no. His wife and children took over the leadership and management of the business. They went on to introduce newer models which makes the business even more profitable than it used to be. The family carried on with their father’s commitment to the business.
Another approach to ease business succession is to put your children or a capable board to the test. Once they have shown a level of interest in your business, you have to show them the ropes. Let them start learning from the bottom so that when the time comes for you to retire, or the unplanned happens, you’re rest assured your business will continue to thrive. When you have objectively assessed the capabilities of your intended successor(s) and you’re satisfied that they understand the rights and responsibility that come with their various role, you’ll then want to indicate how ownership and the running of your business will be distributed amongst your family in your Will.
Alternatively, you can set up a business trust and appoint Trustees to look after your business. As well as make decisions to the best interest of the company. Trustees ensure smooth process and transaction for all parties in a business transaction. They also help you to plan the future for your generations because with a trust in place, you can easily and seamlessly transfer wealth to your coming generations. Trustees also have a fiduciary responsibility, meaning, they are required to put aside personal goals and initiatives to do what’s best for the trust. Failure to include a successor in your Will or to set up a business trust will only put your business at stake. We bet you don’t want that.
If you’re going to be successful at whatever business you’re into, you must overcome your fears. You should be ready to begin planning sooner than later. A well-crafted succession plan aims to benefit everybody; you, the business, your family and other loved ones. To know more about estate planning service, send us a message here or call 01 – 2801420