Running a small business can be lucrative but challenging. This venture could be in various forms, including a family-owned business, which has its own fair share of complexities. Aside from thinking about all the best ways to keep it profitable, including professionalizing its operations, you want to ensure it survives long enough after you’re gone. Achieving this isn’t straightforward, but you can stack the odds in your favor for long-term business success. Below are four ways to protect your family business and boost its longevity. 

 

Have a buy-sell agreement 

 

A buy-sell agreement is a safety net for your business shares, especially when you are running the show with other people. If something unexpected happens, your friends and close people can either buy you shares or, if you are not around, speak to your family. This is particularly useful if you dont want your kin stuck with a business they are not into or dealing with random new owners. Fortunately, there are several ways you can continue to fund the business and ensure your legacy stays intact. A buy-sell agreement ensures everyone keeps doing their thing without any surprises. 

 

Make your legacy about more than money 

 

Tax isn’t an exciting conversation, but is also crucial when running a family business. It’s worth noting that you can hand out up to $17,000 annually to anyone without getting hit with a gift tax. It can be useful to take advantage of this, especially where your kids are concerned. However, beyond that and other financial incentives, remember to give your family something more intangible, such as values and life lessons they can hold on to and apply even when you’re not around. Another thing you can leave is by introducing your family to wealth management. This step ensures you leave a legacy that stays with them forever. If you’re wondering where to start from, you can check out resources on this website https://horanwealth.com/. Here you will find experts who can help with proper financial planning, risk management, and tax mastery to protect your family business. 

 

Ensure fair recruitment 

 

Fair recruitment is crucial for protecting your family business. Doing this will help prevent you from placing people into certain roles simply because they’re family when they’re not the best fit. To create a healthier, more competitive environment, consider letting your family and any other employees you’re considering justify why they’re qualified for the role, and once they’re in, lay down the rules. Inform everyone about their expectations, rewards, and promotions. Lay it all out on the table to avoid any unwelcoming situations in the future. 

 

Consider asset protection

 

You don’t want your assets to be caught up in the chaos when your business hits a rough patch and vice versa. Therefore, it’s essential to take smart steps like asset protection, which is a necessity in the financial world. This step ensures your goods stay safe and sound, even if the business ship hits an iceberg. Remember, life is full of surprises, and if any unexpected situations arise, asset protection can act as a safety net. If you’ve been postponing getting an asset protection policy, now is the best time to finalize things. This way, your family business will thrive without t any unnecessary worries.