Tips to create a successful business succession plan

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.

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