On behalf of Kadish & Anthony Law Group posted in Estate Planning For Business Owners on Friday, August 16, 2019.
When company owners think about a succession plan for the business, they often focus on who is going to take their place when they die. This is certainly important because the business can’t run without someone in charge. It is imperative that they have someone trained to do their duties so that the people who count on the company can continue to operate.
Many business owners stop the succession plan there. They ensure that the person who is taking over for them knows how to run the business, but they forget that this is going to leave another position open. In order to set a successful succession plan, there must be a plan made for every position that is going to be open as people move up to fill positions after you’re gone.
One thing that you need to think about is how your administrators are going to fill the lower level positions. There might not be anyone who can move around to these, so there must be a plan in place for this. Hiring from outside of the company is likely what is going to happen. Determine who is going to mentor the new person and put this into your plan. There is a chance that you can get that person ready now so they can do the job when it is time.
It is a good idea to have a full succession plan in writing so that there is a firm plan to follow. Your employees will appreciate the stability this provides. Your loved ones might also appreciate the income that is continuing while they are adjusting to your passing away.