If there’s one piece of advice that legal analysts offer when solicited for guidance regarding actions to take as people age, they often recommend engaging in estate planning. Drafting a will, powers of attorney and other critical legal documents is part of this process. There’s one more thing that anyone who owns their own company has to do, though. They must engage in business succession planning.
Business succession planning is a process by which company owners identify employees that they believe could successfully run their operation. Leaders then take those individuals and groom them for the role that they hope to have the employees assume down the road. Succession planning is all about making sure that there’s no lag time in transitioning leadership of a company and that it continues to flourish.
There are some instances in which business leaders may not have anyone currently working for them that they could see running their company in the future. Business owners may have to consider sourcing talent outside of their organization in situations like these. Doing this can take time. Bringing this person into your company, getting them up to speed on how you do things and shaping them into the leader capable of carrying your business into the future can also be quite involved.
Companies that have business succession plans in place tend to have better employee performance and retention rates. Workers appreciate knowing that they can expand their skill set, and they’ll have that they have an opportunity to grow in their roles if they perform well.
The hiring and onboarding process is quite expensive. Business succession planning can help company owners keep more money in their pockets by not having to spend unnecessary fees on sourcing and training employees, but instead promoting from within.
Leaders that fail to engage in business succession planning put their company at risk for a lot of unnecessary power struggles and legal battles that may easily result in its extinction. Uncertainty like this can alienate both customers and employees alike, eroding all the work that you put in to grow your company. An estate planning attorney here in Greenwich can help you with business succession planning so that you don’t have to worry about what becomes of your Connecticut company once you retire or pass away.