Updated: Mar 16, 2020
It’s not enough to think about business succession planning to reap its benefits. Thinking must be connected to direct action to be successful.
Most people do not look at their business as an asset that makes up their estate, so business succession planning is often overlooked in both their estate planning goals, and in common cookie cutter plans.
With no succession plan in place, the business you’ve worked so hard to build has a high chance of failing in the future. For family business owners, between 70 and 85 percent fall apart by the third generation and the numbers jump to 95 percent after that. Even if you don’t intend to pass down the business through your loved ones, it’s smart to tap talent now and have a clear team and plan in place to move forward if you suddenly need to exit the business.
The truth is that your business succession plan must be unique for you and your company. While you can’t foresee every potential challenge that could force you to exit the business, you can take proactive steps that make you more visible to those blind spots and implement strategies to help in the event of an unexpected departure.
In fact, you probably already have numerous unique processes inside your business- it’s what sets you apart from your competition.
Since proper business succession planning takes a comprehensive view of the business and impacts multiple stakeholders, you need your own company process to identify, discuss, and resolve these serious issues and concerns. Your succession plan will likely rely on multiple people and a few processes to keep things going in the short term while the long-term plan is put into place with transition.
Ready to establish your vision and equip your business with the tools to go into the next generation and beyond? Set up a meeting to discuss the process today.