Each business owner is an individual with their own preferences. Recognizing this is an important part of developing a business continuation plan.

In developing a business continuation plan, it’s important to recognize that the preferences for the business interest of each owner may vary. One owner may want a family member to get his or her business interest; one may just want their family to get cash for their interest; while another may want one or more co-owners to obtain their interest. It is important to know the preferences of each owner, and whether or not their interest will go to a co-owner, a non-owner, a family member, or perhaps no one. These answers determine the possible structures of the business continuation plan and available solutions. The chart below identifies a number of solutions available, depending on the preferences of the owner.

In addition to the owner’s preferences, the preference of the surviving business owners must be considered. Do the surviving owners want to maintain the same relative ownership among them after one death as they had prior to the death? All of these items must be considered.