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Does your small business need a succession plan?

On Behalf of | Dec 30, 2021 | Business Law

Running a business means taking on responsibility not only for your own income but also for everyone else who you employ. Whether you started, purchased or inherited your small business, you likely feel a strong sense of attachment to the company and a sense of personal pride for its success. 

You may hope to pass it on to your children or to your protege at the company who has the same drive and passion as you did when you first started your career. If you don’t intend for your company to close when you die or become unable to manage it anymore, then you will probably need to draft a succession plan. 

What does a succession plan do?

Your succession plan should make it easier to put someone else in your current position at the company. It guides the transition to new leadership, especially if it has to occur without much planning ahead of time, such as after the death or hospitalization of the current owner. 

You might include a list of candidates who could fill the position, educational and professional experience that you think would make a candidate a better fit or even training suggestions. You may also provide information about the operation to perform for the company and crucial details that aren’t written down anywhere else. A succession plan should help other people train your replacement or make it easier for your replacement to take over all of your responsibilities. 

Drafting a succession plan can be an important part of business management for someone who wants their business to be part of their legacy.