Succession planning is a crucial part of ensuring your company's longevity and security. If you set a comprehensive plan in place early on, your organization can navigate leadership transitions and other unexpected events with ease. A successful succession plan involves several essential steps, including identifying key positions, choosing qualified candidates, and training promising employees.
Does my company need a business continuity plan?
Every business owner with a successful, profitable company needs a succession plan. A succession plan is a necessary step for ensuring that your business continues to thrive even in the event of loss of leadership. A succession plan can help you prepare for the future, avoid miscommunication, and make sure that your company upholds the values and goals that were set when it first began. If you are concerned with how your business would be impacted by an untimely illness or death, formulate and implement a succession plan.
When should I create a business continuity plan?
You can create a succession plan at any time, but it is generally a good idea to write one as soon as possible. Succession plans are primarily used to lessen the negative consequences of unexpected events, so the earlier you write them, the more beneficial they can be.
When drafting a plan, many organizations allow for two categories of events: death/accident and retirement. Death/accident plans are reserved for worst-case scenarios and should be finalized well-before they are needed. Retirement succession plans are usually executed gradually over a long period of time and often focus on a predetermined date, set several years in the future.
- Presented by: Steve Puryear, CPA - MSU CAVS Extension
- Date: Tuesday February 9, 2021
- Time: 10:00 - 11:00AM CST