Think of succession planning when starting your business

On Behalf of | Aug 19, 2021 | Business Law

In the excitement of getting your new business up and running, it is difficult to think of everything you need to do.

Succession planning may not be part of your checklist at this point. However, if you have partners, shareholders and employees, there is no time like the present to give it thought.

What it is

Creating a succession plan enables you to make preparations for the transfer of your company in the event you either retire or die. Effective leadership is of prime importance. You may already have someone in mind based on experience, emotional maturity and commitment to company goals. If you have a board of directors, a succession plan will help the members narrow down the field and choose the leader best qualified to guide the company into a successful future.

Collaboration and leadership

Whoever you choose as your successor should have the qualities necessary to promote collaboration among company executives and managers. Harmony at the management level is essential. Everyone should work toward the goal of future success and be able to do so with like-minded dedication.

A helpful roadmap

Your ownership interest in the new venture is something you may wish to pass on to future generations as part of your estate plan. In order for the business to continue and flourish, you need a viable succession plan.  With the appropriate guidance to help you avoid any legal missteps, you can ensure that your hard work in starting the company will extend to effective succession planning.

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