GAHZLY

Choosing a successor is not an easy task, however if you follow the steps outlined below, the task will be more organized. 1. Choose Your Successor The successor must be someone who has the right skills and ability to lead your company once you decide to leave. If you cannot do this on your own then seek the advice of your board of directors if you have one. Otherwise enlist the aid of an attorney, accountant and business succession plan consultant to aid in the choice. Making the decision should not be based on emotional factors but rather on objectivity. The plan should not be completed within months of your decision to retire, but rather between ten and fifteen years prior. Life Insurance Life Insurance for owners that have business partners, could be perilous to the ongoing operations and allow for the succession plans to be needed and used. The death of one business partner could result in considerable loses for a business, and could force a business into insolvency. One of the mo...

One of the major questions I ask business owners is: “Do you have a succession plan or exit strategy for your business?” I also ask employees: “Do you know if a succession plan or exit strategy exists in your company or organization?” You may be surprised to know that in my experience more than 90% tell me they have no succession plan or exit strategy. A 2004 CIBC Small Business Outlook Poll (conducted by Decima Research), indicated that 39% of small business owners plan to sell their business and 15% plan to have a family member take over. Yet, two-thirds (67%( of the entrepreneurs polled stated that they had not yet broached the subject of who will take over the company. To me that result is very telling and frankly is a motivator for writing this article. Succession planning is a critical factor for the long-term success of any business. Leadership transitions in business affect the entire organization’s continuity, employee retention, client retention a...