For most business owners, the business is their most significant asset, and the financial success of that business has a direct impact on their families' economic security. Without proper planning, they may have difficulty tapping into the value of their business to support their retirement, or their family may lose the value of the business upon their death. 

Effective business planning coordinates the management of the business throughout its life cycle, including risk management, distributions to owners, and succession planning. When planning for the life of your business, it is important to consider the following points:

• Effective risk management helps protect both personal and business assets. 
• Executive compensation differs depending on the size and structure of a business. Large businesses provide owners with complex compensation formulas, while small businesses adopt a more straightforward approach. 
• Succession planning is important for transitioning a business from an existing owner to a new one. It involves creating a sellable business, formulating specific transition mechanics, positioning a business for sale, determining valuation and terms, grooming senior management, and creating strategic alliances.