Without a leader, businesses fail. For small to medium sized businesses, the loss of a leader can be a fatal blow. That’s why it’s critical for business owners to spend a good amount of time on succession planning: carefully planning for the future of their business.
What would you do if something happened to your business? What would your business do if something happened to you? Many owners shy away from these thoughts, deeming them either unpleasant or irrelevant. However, contingency planning is something you simply must do for the survival of your business.
58% of small business owners do not have a succession plan in place. So where do you start? This infographic from Bestow gives an in-depth look into what you should include in your succession plan.
Key Takeaways
Objectives of Succession Planning
A succession business plan includes instructions as to how your business should replace you if you are disabled, retire, or pass away. Your replacement should ideally be someone you know and trust. Of course, if you run a family business, you may already have an heir in mind.
Finding a Business Successor
If you have a specific successor in mind, then you need to name them in your succession plan to clear up any confusion once you’re gone. If you do not want to specifically name a person, then it’s wise to lay out a protocol that covers how you want your business to go about securing your successor.
To make sure these matters are properly addressed and legally viable, you should consult an attorney. Aside from these legal aspects of succession planning, a large part of it is simply knowing who your ideal replacement would be.