There are many considerations that must go into owning and operating a business. Business planning is essential for the future success of companies in Michigan and elsewhere. What some business owners may neglect to consider, however, is succession planning.
There may come a time when a business owner can no longer keep up with the workload, suffers a serious illness or even passes away. Having a plan in place for how to handle the business if any of these events occur can help keep the company sustainable. When it comes to family-owned businesses, some may wish to put this off in order to avoid hard feelings or other potential problems should there be disagreements about the decision. Unfortunately, waiting typically causes greater problems.
Picking a successor is not always an easy task. There may not be one person who stands out as an obvious successor. At the end of the day, the person who gets the job should be the one who is best suited for the position or who, at least, shows potential. This can be hard to see without an outsider's perspective. One who is having a hard time with this decision can ask a third party to evaluate all potential candidates in order to help him or her form an unbiased opinion, perhaps making the decision slightly easier.
Business planning takes time, and it something that Michigan business owners need to do throughout the lives of their companies. Succession planning is an integral part of a successful business plan. In order to protect the future of a company and its named successor, creating a solid legal plan will help keep company operations going when a leadership transition takes place.
Source: tallahassee.com, "Succession planning is critical in family business", Jerry Osteryoung, March 13, 2015