The True Strength Of Succession Planning

There are some facets of the law that have a degree of crossover. For instance, business owners (small or large) may find themselves in need of an attorney who has a background in estate planning. Why? Because they will need to develop a business succession plan.

Not only is this the best thing for your business over the long term, but it is also critical for the people who rely on the business. Imagine if you, a business owner, were to pass away suddenly. Would your company be able to run without you? Is there a logical or planned successor to take your place?

The Next Face Of The Business

It is imperative that someone is being trained and prepared to run the business in your absence. As a leader, you will be forced to look at how your company is organized and who can run everything within it.

With that said, you may not have anyone. That isn’t a slight against you or your business. It simply means that you have the right people holding the correct positions. If that is the case, you must look externally for a candidate. Just by thinking about a business succession plan, you are identifying points that need to be addressed.

The need for a successor is reason enough to begin your plan far sooner than when you would need it.

Vetting, Building, & Training

Small and large businesses alike face similar challenges when looking for a new successor. The scale of which is different, but the need remains the same. Whether the position is sourced internally or externally, there is no guarantee that you found the right person.

They may have excelled at another company—or they have been remarkable at their current position. Regardless, they have not been in your seat. They have not proven they can run your business.

When you start a succession plan early, you can vet multiple candidates. This can be done within how you have organized your business and within your budget. For a small business with a very fixed budget, this could simply mean challenging some employees with added layers of responsibility to see how they handle it and how they choose to do it.

Drucker & Mattia

Drucker & Mattia, PLLC has an extensive background connected to both business law and estate planning. If you have any additional legal questions or are ready to meet with an attorney, contact us for a free consultation.