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Successor Planning Basics

Turning over your business at retirement or in the event of an accident takes strategic successor planning for things to go smoothly. It’s important to iron out these details before they’re needed, but many people put this off for a rainy day. It’s a mixture of not wanting to deal with tough issues and thinking they’ll never really need them; however, not taking the time can leave your legacy in peril.

Hire an Expert

Hiring a succession expert can help you design a plan that will make things go smoothly during a time that will be turbulent for your business and family. Someone who has been through the process with other owners can point out surprising issues that have given other people trouble. They can also encourage you to do things that made the process go easier for similar outfits.

Make Succession Planning a Top Priority

In order to prevent putting this important job off for another time, set aside a specific amount of time to get it done. Put it in your official schedule or hire someone and give them a definite deadline. Much like making a will, putting together a successor plan for your business can be difficult to think about. However, it’s still necessary to protect the people you’re leaving behind.

Family or Company Goals

Many businesses owners leave their role in the company to a child versus a more experienced business associate. To a degree, this is socially expected and deviations to the plan can be hard for people to accept. An experienced succession planner can help you navigate the waters between family and company goals to make sure your assets and your family ties are protected.

Another issue entirely arises when there is no family to consider. Choosing the right person for the job – while keeping existing loyalties and balances of power intact – can be incredibly difficult without guidance.

Automate the Process

Truly helpful successor planning is somewhat automated to kick in as soon as your place in the company ends. While no one may know your plans beforehand, if something happens to you, there will be a system in place for informing all important people of coming changes. The more structure you can provide, the more problems you can prevent.

No one likes to think about certain “what ifs.” Leaving your business to someone else, either at retirement or upon death, is something most people don’t want to think about. Still, it’s an important part of keeping your family, business and investments safe. Get started today on successor planning and give your friends and family extra security during one of the most difficult times in their lives.

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