Take a moment to think about what would happen to your business if you passed on or became incapacitated. Can the company survive? If that thought sets you in a panic mode, you need to consider creating a business succession plan.
With a succession plan, you can spot critical roles in the organization and the individuals best suited to fill the positions in future. It establishes a path for each role and highlights the expertise required for optimal performance in the role. If you own a family business, the succession plan will also help reduce conflict when you can no longer run the business.
Benefits of Succession Planning
Change is inevitable, and it may happen sooner than expected. When your business has a direction, you and your team can now plan for the continuity of the business. Business succession planning can help you offer employees a clear opportunity for growth since retiring employees will transfer knowledge to younger individuals within the organization.
Succession planning aims to keep your business growing even after you are gone. Thus, the succession plan has to align with your business strategy and focus on innovation, business expansion, and overall business growth.
A succession plan boosts the resilience of your company. While it may be easy to replace your employees, identifying who will take over after you are gone can be a challenging task. Without a succession plan, you will be taking the loyalty of your workforce for granted. The plan will guarantee the stability of your business in the future in case you or other top-level managers are gone.
Planning also helps you facilitate your retirement effectively. You can explore all the options and pick out the best retirement plan that best benefits you one. With succession planning, you can also effectively determine the timing for your exit.
Succession planning helps you minimize tax obligations and other legal implications of transferring the ownership of your business. It is essential to seek the help of an accountant, attorney, and other professionals to determine if there are any implications of transferring the property.
Planning for the succession of your business comes with several benefits to your beneficiaries and the company at large. When you contact a Wilmington business succession planning attorney, you will design a plan that will help you plan for the future.
Contact a Wilmington Estate Planning Attorney Today
Succession planning is an essential task that proactively protects your assets in the event of your incapacitation or death. Working with an estate planning attorney allows you to understand your legal requirements as you plan to be less involved in the business’s operations.At Rountree Losee, we have a team of succession planning attorneys to offer the legal support you need throughout the process of creating and executing a succession plan. Contact us today to schedule a consultation with our attorneys.