What Is a Succession Plan?
November 4th, 2015
In life and in business, you must plan ahead for the unexpected. A succession plan outlines a clear path for what should happen to your company when you retire or step aside due to illness or a disability.
Succession planning involves multiple components. You need to choose a successor to helm the enterprise, ensure the financial and organizational stability of what you’ve built, prevent legal issues from causing stress, prepare your people for change, and define your own next act, personally and professionally.
To set the scene for a seamless transition:
- Draft a success plan, regardless of the size of the company. Even small businesses need to prepare to avoid unnecessary taxes and costs and a loss of control.
- Look within and without. Searching for a successor requires diligence, patience and an open mind. Look for someone who shares and embodies the company’s values and who will respect and continue its purpose.
- Stress test the business. Run simulations to determine how things will proceed without you at the helm. Pay attention to the results of these tests when winnowing your list of candidates.
- Create structures and guidance for the successor. Share your concerns and dreams, and make yourself available (if possible) throughout the transition.
Benefits of proper succession planning include:
- Ensuring your business’s mission will continue after you’re gone;
- Providing continuity of services for your clients and employment for those who’ve devoted themselves to your business;
- Maintaining solid financials and reassuring investors;
- Offering you and your family peace of mind and flexibility.
Don't let your lack of a succession plan undermine the sustainability of a business you have worked so hard to create. Our attorneys can develop an Ohio succession plan that resonates with your values and meets the needs of your business. Call us now to discuss at 1-937-898-5583.