Business owners in Massachusetts and New Hampshire spend little time thinking about a future when they no longer operate their companies. Unfortunately, this means that most company owners lack a business succession plan. For those who have no children or have kids that are not interested in taking the reins, lacking a plan may put their company at risk for failure.
Although no one likes to contemplate such a time, it is extremely unwise to overlook this critical part of keeping your business a success. Creating a succession plan is a way to make sure that your long-term company goals remain intact after you have died or retired.
Business succession is often a complicated process that can be easier with legal guidance. In the meantime, learning more about business succession can help you develop a better understanding of the process. Learning from already proven research can also help.
Proven tips for effective succession planning
- Start early to ensure you are prepared for unexpected events like an illness or injury
- Review or develop your long-term business goals
- Consider who is best qualified to take control of the business and create a shortlist of candidates
- Begin training your successor or successors as early as possible
- Create an exit plan for when it is time to hand over control of your company
- Put everything in writing and have an experienced legal advocate review and formalize your draft
Developing a business succession plan is not the most pleasant task for any business leader. However, having a plan in place brings you peace of mind from knowing that your company has the best chance of continuing to thrive.