If you own a business, you may have already considered who will take over the company once you retire. As you know, this may include tasks like identifying and training potential replacements for key roles in the organization, as well as being able to foresee future staffing needs. This is a difficult but necessary process for successful organizations. Creating a succession plan can help ensure the longevity of your business and can help mitigate the risks and address the pain points associated with organizational change.
5 Steps to Begin Developing a Succession Plan
This is also a good time to formalize your Standard Operating Procedures (SOPs) and perform a valuation of your business to inform your succession funding plans.
At this stage you should also work on developing the financial aspects of your succession plan, including funding plans and timelines.
While you should be working on funding throughout the entire process, now is the moment to really zero in on funding your plan. Then, follow through on your decisions.
Challenges of succession planning
Some of the challenges of succession planning might include:
Succession planning should be addressed at least annually, especially for companies experiencing rapid growth. An effective succession plan can help keep hiring costs down, improve your brand and boost retention rates. Most successful business transitions are the result of careful planning, sometimes years in advance.
As you near retirement and begin considering how your business will continue after you retire, let’s discuss creating your ideal succession plan. If you’re ready to plan for or implement an effective transition, give the office a call.
This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.
Creating a Succession Plan for Your Company
May 10, 2023