Most business owners are currently spending much of their energy working to ensure their company’s near-term survival. Others are working long hours in businesses that are currently thriving despite these difficult conditions. While this hard work is admirable, it sometimes causes us to overlook our long-range plans.

Because so much has changed so quickly, many Americans don’t know how to adapt. I suggest you start by looking at your estate plan, strategic business plan and exit plans. If you do not have any plans in writing, now is an appropriate time to create them. Your planning should confront new challenges and take advantage of the opportunities that have recently been presented. The following examples illustrate the need for planning.

Starting on the business front, if your strategic plan involved expansion into the renewable energy field, are you aware of the new tax credits and incentives and how these may alter or expedite your game plan? Alternatively, if a component of your strategic plan was to move toward doing work in Dubai in 2010, and this is no longer a wise move for your company, what will you do instead?

On the more personal side, the estate tax laws have changed tremendously over the past few years. You can now leave up to $3.5 million free from estate taxes. You can double that to $7.0 million if you are married and have the right estate plan. This is great news for some, but can actually spell disaster for others. Have you considered how the increased estate tax credit, especially when combined with any changes in your personal and company net worth, affects your goals for your family and the company? If not, now is the time.

Your exit plan is a combination of personal and business issues that basically details how and when you want to leave your business (or turn it into a cash cow from which you can semi-retire). It also covers what happens if you do not make it to your planned exit date. It is like a succession plan turned on its head, since you focus on your goals and only deal with the issues of death or disability as a sidebar.

An exit plan for a company that has seen its growth seriously dip could need various adjustments, all depending on the owner’s goal. For some owners, the dip opens up opportunities that need to be seized right now (like tax advantaged gifts to children). For others, a dip will cause a delay or other changes to the plan. Unexpected success also opens up an array of possibilities that your exit plan should address. The key is to recognize and implement changes so you are moving toward achieving your goals based on today’s realities.

Keeping on top of these matters allows you to stay in the driver’s seat. Always plan to succeed according to your definition of success. As a lawyer working with entrepreneurs and as the Learning Chair for the Detroit Chapter of the Entrepreneurs’ Organization, I welcome your comments on how you adjust your plans to succeed. Together we can move toward a prosperous future.

For further information regarding these matters, please contact Ms. Umphrey at 248.619.2591 or click here to send an email.