One of the many advantages of a smaller sized family business is the ability to respond to changes in the market quickly. This was true before the coronavirus, and it is true today during the pandemic.
While there are family businesses that will struggle and fail during the coronavirus pandemic, there are others that will not only survive but will thrive and find new markets and new possibilities for future growth.
Working closely with a family law attorney to structure the business is critical in Dallas and throughout the state. A family lawyers in Dallas with business expertise and experience can assist in developing a business structure that protects assets of the company as well as of the family owners.
Succession Plans
The use of a business and family law attorney also helps a family business to develop an effective succession plan. This ensures that if a current business leader in the company is unable to work for some reason, there is a clear structure as to the person who will step up and fill that role.
This is a critical aspect of planning for any family business in Dallas. The decision to keep a company in family control or to bring in someone from the outside to lead is often challenging. A family law attorney can walk the business owner through the options to make the best decision for leadership succession.
Unfortunately, many family-owned businesses do not have this planning in place. When there is a tragedy, such as this COVID-19 pandemic that impacts the current business leadership, someone in the family simply steps in to fill the role. When this person has limited business leadership experience and expertise, the entire business can fail in a very short period of time.
Future Planning
Strong leadership in family business planning is also required to determine the best action for the business. While there are specific loans and programs for small businesses, not all will qualify. In these situations, leadership that is creative, flexible, and able to renegotiate debts and contracts is essential to keeping the business financially stable until the economy reopens.
A family law attorney from Orsinger, Nelson, Downing & Anderson, LLP, can assist with family business succession planning.
