Make Sure Your Business Has A Succession Strategy In Place

If there is one thing that you can be sure of, it is that no successful business was able to get to where they are at today without a significant amount of planning and strategizing. In business, it is all about analysing all aspects of the business at all times, including past results, the reality of today and the trends that could affect the future. There is no such thing as being complacent in the world of enterprise and expecting to get ahead.


Planning for the Future of Your Business

When you take a moment to analyse business cycles, one thing that always recurs is that business leadership changes. Even though a company may have the best executives and board of directors working for them today does not guarantee that they will all be around tomorrow. This is just part of life. It is the nature of business for people to retire, step down or pursue other business opportunities that are presented to them. For this reason, well-organized businesses realize that succession planning is key to keeping their operations running smoothly during transition periods within their enterprise. This type of plan clearly defines exactly what is supposed to happen when there is a major or unexpected change in leadership or the board of directors that are decision makers within the corporation.

Have the Proper Documentation

The only way to assure that things within your business do not fall apart during an unexpected step down due to health problems, death or other unforeseeable reasons is by having your plan clearly defined in a document that must be upheld during these trying times. In many cases, this would be a procedure that is followed to appoint an interim executive officer to step in and take the place of the person who is leaving the corporation. This same premise is followed by people that are exiting their role as a board member.

Family Owned Businesses

If you are involved in a family owned and operated business, having a plan for succession is important to keep the peace in your family. There are many examples of families that have been torn apart when the matriarch or patriarch of the business passes away, but leave no clear instructions on who in the family is supposed to inherit, manage and grow the business after their death. This leaves all of the surviving family members that are involved in the business to quibble amongst themselves about who is in charge and what direction the business should take. As you can imagine, this type of fighting can lead to lifelong rifts between siblings, cousins, aunts, uncles and any other family member that had anything to do with the daily operations or oversight of the family run operation.

If you are unsure how to implement a plan of succession for your corporation or family run business, it is always a good idea to speak with a professional that specializes in this type of work. They can help you devise a plan that meets your personal and business needs.

Kevin Kholi

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