Wednesday, September 11, 2013
Business succession planning can be challenging when there’s a great deal at stake. Business owners need to ask some simple questions to help assess their options and make informed decisions.
First, owners need to ask themselves which person has the best skill set to manage the company and take it to the next level. Many small and family-owned businesses may be inclined to choose a relative or right-hand man, but acting on emotion for this important decision can lead to future leadership problems. Instead, think with a business mentality and choose the employee with the best disposition, training, and inherent skill.
Also, to ensure a smooth transition, owners should consider who will replace the employee who is promoted.
Lastly, new leaders and managers should be well-versed in the company’s financials, especially when it comes to tax and estate planning. Ensure they have access to pertinent documents, know what assets they will inherit, and how these assets are affected by tax laws.
See Frank Brunetti, Key Questions to Ask During Business Succession Planning, JD Supra Law News, Aug. 30, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.