Business expert provides succession plan insight
Effective planning is essential at every stage of business development, and planning for the future of your business should always be done with your ultimate goal in mind. Some business owners go through their day-to-day operations with vague goals, or no strategy in mind other than press on, and this is a recipe for disaster.
The endgame of planning business planning with goals in mind is a succession plan. A succession plan is not a one size fits all strategy which can be used for any business, but instead it is a plan tailored to the unique traits of a company such as ownership’s goals, company structure and more.
I am a business coach based right here in Cincinnati, Ohio, and it’s been my honor to serve businesses of all types, sizes and structures to help them accomplish their own individual goals. As a business coach, I work as an extension of the company I am working with and we combine their knowledge of and passion for their industry with my mastery of the corporate world to help their business thrive.
A business owner should always be thinking about the future of their company, and this even involves planning for the company’s structure, operation and profitability after their departure from the business.
Some people go into business with the short term goal of scaling the operation quickly and then exiting the business via a sale to a larger company. While this is a viable exit strategy and has been profitable for countless business owners, other companies exist with the goal of operating for many years, generations even. When this is the case, a clearly-defined succession plan should be in place.
Many clients think a succession plan is something which should be considered only when they begin to envision their retirement, but this is not the case. A succession plan begins at the inception of the business, and can look differently depending on the ownership structure of the company.
In the operating agreements of many companies, a succession plan’s framework should be laid out. When a company is owned by multiple people, the agreement should state what happens should a member leave the company, whether it’s because they pass away or seek to sell their interest in the business.
By having this information drawn up beforehand, it can keep the company from messy legal situations in the future. A successful succession plan from an ownership transfer standpoint should be clear, agreed upon and amended as necessary.
The other component of a succession plan lies in the actual operation of the business. When an owner leaves, the goal should be minimal disruption in the day-to-day operations for employees, customers and other stakeholders. An effective succession plan also involves the delegation of responsibilities during the change in leadership to ensure the company stays afloat and set up for success moving forward.
As stated before, there is no one size fits all succession plan for any company due to their complex nature and the unique aspects of any business. If you’re seeking assistance with succession planning or any other business challenges, fill out the form on my website or call today and we can begin the process of working together to reach your company’s goals.
