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Does my business need a succession plan?

On Behalf of | Aug 23, 2021 | Business Law, Commercial Litigation |

Even the most dedicated business owners will need to step away from their commercial enterprises at some point. Whether you end up selling your business or retiring, you must have a plan in place to ensure it continues to thrive long after you have passed over the reins.

According to Kiplinger, succession planning is an essential aspect of business ownership. However, many owners avoid the process because they are not yet ready to give up their business. Planning now offers numerous benefits, especially when you take the following approach.

Set time aside for the planning process

With something as important as succession planning, you want to set aside ample time to see it through. For the best results, the entire process should play out over a full year. This gives you enough time to make decisions and communicate them to others, without feeling rushed or under the gun.

Choose multiple successors

You know better than anyone who is fit to run your business. You might even have a few potential candidates in mind already. Choosing more than one person adds another layer of security, in case your first selection is unable or unwilling to take over. Just make sure you communicate this explicitly to each candidate, so they do not mistakenly believe the job is theirs alone.

Inform your customers and clients of the changeover

It is natural for your loyal customers to experience anxiety at the thought of someone else running your business. That is why it is up to you to assuage their fears long before the switch occurs. Sit them down to discuss your successor’s credentials, as well as address their concerns or questions. By providing peace of mind, you can ensure a smooth transition.

Having a plan in place now does mean you must give up the business you worked so hard for. Instead, you can rest assured that your enterprise is secure, no matter what happens.