A business is only as good as it’s Business Succession Plan. After all, if all of your business success is tied to the owner continuing to run it, what happens when they are gone? Is the business just over? Every business owner should have a strong Business Succession Plan in place so they can exit on their own terms – and have their company continue to succeed without them.
So what is important to include in your Business Succession Plan? It is not a one-size-fits-all sort of document, although there are certain elements that should always be included. As you seek to create one that properly reflects your company, here are 4 different elements that you should include in your Business Succession Plan:
1. Owner Exit Plan
There should be a literal, specific plan for how the owner will leave the company and pass it along to someone else. This should include a timeframe for the transition, who intends to help with the process, and who will become the new owner at the end – if that information is currently available. The owner exit plan should include any specifics that are important to the owner about final tasks and what they can take with them.
2. Internal Corporate Structure
What does the new corporate structure look like after the current owner is gone? How does it shake up other positions? How does it keep the company functioning to the best of its ability? Creating a clear internal structure not just for the new owner but for the entire company establishes stability and helps retain control and understanding.
3. Insurance Plan
How does the company’s Insurance Plan get involved with the owner leaving and a new one taking over? Who do they keep as the head of the account? Discuss this with your Insurance Company in advance and include your findings in your Business Succession Plan.
4. Business Continuity Plan
As we’ve written about before, a Business Continuity Plan ensures that your customers will receive the same level of service they have come to expect from your business even during this time of transition. Your Business Continuity Plan should include how you plan on continuing that service no matter what else is going on.
Get the Help That You Need
Most business owners love their work and want to continue doing it – but also hope to eventually see it succeed without them. Creating a strong Business Succession Plan is essential to paying that dream off. For help making a Business Succession Plan that matches your needs, contact Bryant Taylor Law today! We help with building and protecting Florida businesses!
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