The Most Basic Step in Implementing a Business Succession Plan
Kimberly Ann Bastes
The Most Basic Step in Implementing a Business Succession Plan
Having a business succession plan is a vital part of ensuring the continued success of your business. Without a plan, the unexpected death or disability of a business owner can put your company at risk. Failure to plan for this scenario can result in a chaotic transition and the wrong assumption of responsibilities. A formal, written succession plan should cover several important aspects. It should also be reviewed on a regular basis.
One of the first steps in implementing a succession plan is to draft a business plan. This includes a valuation of the business. It should include funding options and methods for financing the business. It should also document the organizational chart, standard operating procedures, and employee handbook. It should also include a description of how the business would function in the event of the owner's death or disability. It should also include a list of possible successors.
Before you start drafting your business succession plan, it is a good idea to speak with a business attorney. These professionals can help you determine the value of your business. They can also help you create supporting documentation. This could include a mission statement, a vision statement, or a succession plan.
If you own a family business, you may want to include your children in the planning process. You should have an open line of communication with them and be prepared to share the details of your business with them. They should know the importance of their role within the business and the goals of the company. You should also discuss with them how they will communicate with your customers.
In order to create a successful plan, you should have a plan in place for recruiting and training future leaders. This should involve employees from all levels, including the customer service representative, shop foreman, and other key positions. You should also consider including a mentor for smaller businesses. You can find these resources through organizations such as the Service Corps of Retired Entrepreneurs (SCORE) and the SBDCs.
Having a succession plan is a long-term project, and the best plans are refreshed regularly. The plan should be evaluated on an ongoing basis to reflect changes in the industry, changes in tax law, and other business considerations. In addition, your business plan should reward your successor for his or her success. Ideally, your successor is well-trained for the leadership and management positions you have identified. However, it is important to remember that there are inherent traits that may make it difficult to train for.
Whether you are a small business owner or a large corporation, you can benefit from creating a business succession plan. If you have a complex business, you may want to consider hiring an accountant or professional facilitator to help you develop your plan. These firms can be particularly helpful if you are considering a sale of your business.
The most basic step in implementing a business succession plan is to identify your successor. This can be a daunting task, but the process can be made much easier by using the services of a professional third party. These professionals can help you assess the value of your business, draft a succession plan, and support your plan with additional documentation.
If you need a business succession lawyer, please call this law firm for a free consultation:
Parklin Law
5772 West 8030 South, Unit N206,
West Jordan, UT 84081
(801) 618-0699
parklinlaw.com/
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