Recently in Succession Planning Category

Entering into business succession planning is imperative for anyone that owns a company. This strategy is necessary for passing ownership of the business or protecting it against the loss of a key employee.

Developing a business succession plan lets owners choose a successor to take over the company in the event of retirement, death, or if tragedy strikes and prevents the owner from performing their duties.

In addition to choosing a successor, owners need to establish a value for the business. If multiple partners are involved, values can also be established for each partner. Business values can be obtained by conducting an appraisal of business assets, purchase orders, accounts receivable, and shares of stock.

Succession planning plays an instrumental role in readying employees for advancement. These methods are often referred to as 'grooming' employees, but the reality is these methods are vital for a company's overall success.

Companies that don't engage in succession planning may find their self in challenging situations if key personnel leave their position. Bringing employees up to speed to fill the role often results in delays and financial losses.

As a business grows and expands, owners need to identify employees that can be promoted into key positions. Owners should always have a 'right hand man' around that could take over business operations at any given time.