Can I Modify A Business Succession Plan?

Posted by Winifred "Wini" Cannon | Sep 16, 2020 | 0 Comments

Are you wondering whether or not you can modify your business succession plan? Yes, you can. While you want to have a framework, you always want to review it at least annually to see whether or not you're on track.

What you should review

You always want to understand whether you have talent flow. Do you have enough resumes? Are you cultivating the people that you want to either take over the business or that you want as key employees? Are you courting outside entrepreneurs, maybe even competitors, who might ultimately buy out the business?

More things to review

There are so many things that you need to review. If you're the key person in your business, can your business function without you? Have you set up the business with the kinds of operational systems that work like machinery? And if someone were to purchase it, would it be a turnkey system and they could pick up and make money right away?

Look at how you have systematized your business as well as at its retention policy. As to the people that are making the business profitable, are you giving them incentives to stay on so you can have that continuity of growth?

What you should also do

Of course, you also want to have an independent person evaluate your company to find out if the valuation may be low or not where you think it should be. Could it be increased? What are some of the things that you can do in the company now to increase its value?

Why reviewing your business is so important

Your company is an ever evolving thing, and your needs may grow or become more defined as you get closer to either retiring or moving on, out of the business. It's an essential point to recognize that you can modify your plan because you're going to learn more about your business as the days go on. You're also going to learn more about exit strategies and the continuity of your business.

About the Author

Winifred "Wini" Cannon

Winifred “Wini” Cannon knows how business owners may be impacted when retirement, incapacity, or death occurs without a good plan in place. One example that is very common is in the instance where one partner dies leaving the other trying to stay in business complicated by the...

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