Succession Planning Tips

Consider many options. Such options include: selling the business to family members or trusted employees, selling to a third party or liquidation.

Begin planning early. The most successful planning starts five to 10 years before you want to actually transition out of your business.

Assemble a transition team. This should include your attorney, accountant and other critical advisors like your banker, insurance provider, etc.

Set “life” goals. Exit planning is a proactive process that takes control of the future of your business. So, decide what you want to see happen with the business while you’re alive with help from any advisors.

Assess all assets. Determine the cash value of your business before any decisions are made.

Identify key players in a business. Determine which leaders will comprise future management and what role such benefits as incentive plans, profit sharing and more have.

Train future leaders. Training needs for the next generation of management should be assessed and planned.

Plan for the unexpected. A succession plan should include “contingencies” in case of death or other emergencies.

Monitor and allow for flexibility. A succession plan should be monitored and revisited over time to be sure it is working and to make any necessary adjustments.

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