After working for years to acquire wealth and establish a strong presence in your chosen industry, it might be time for you to think about retirement or to consider that you may not always be here or be able to stay at the helm of your ship. You love your business. It is part of who you are. However, you understand that a time may come when your time as its leader will be finished. Having a solid business succession plan in place will make the transition a lot less stressful.
There are several factors to consider when executing a business succession plan. You may have additional issues to think about or instructions to incorporate into your plan. At the start, though, it is helpful to set time aside to think through the topics that are mentioned in this post.
Will you want someone to sell your company or keep it going?
If you were to ask a trusted individual or group to sell your company as part of a business succession plan, you would not be the first nor last business owner to do so. There are many reasons why you might believe it is better to let someone sell your business if you are no longer here on earth to run it or enjoy it.
On the other hand, especially if you own a family-run business, your greatest hope might be for future generations of your family to retain ownership and keep providing products or services to customers. In this case, you will need to decide who will own your business, as well as who will oversee daily functions, control payroll, hire and fire employees, and more.
Leave room in your business succession plan for changes
Too rigid of a business succession plan might backfire and have disastrous results on daily operations and profits. It is better to develop a plan that is flexible. When you are no longer in charge, changes may arise that require new decisions or new ways of doing things.
A solid business succession plan enables someone to have the authority to make changes or amendments to the business, as needed. If you aren’t sure how to word your instructions, it is a good idea to seek guidance from someone who is knowledgeable on the topic. Will your business be an inheritance or will it go to the highest bidder? There are many options, and you can devise a plan that fits your ultimate goals.