Planning For A Successful Business

1966 Words8 Pages
Entrepreneurs need plenty of self-belief in order to make it in their chosen industry. Unfortunately, entrepreneurs are often guilty of focusing on building their business around themselves and forgetting to consider what happens to the business after they are gone? If you spent a lot of time creating a successful business, you should definitely spent enough time on planning for its future after you no longer work, whether due to retirement or something more unthinkable. Succession planning as vital for entrepreneurs as it is for big businesses. This guide will help you understand what succession planning is all about, why it is important and what options are available for entrepreneurs. It’ll also help you focus on the key aspects of creating a good plan. What is succession planning? Succession planning is all about the things that happen to your business once the owner steps down from running the business. A good succession plan is essentially the roadmap for continuance of the business after the owner is no longer part of the business. It deals with different aspects of changing ownerships, both in the instance of retirement, but also in case of death. It makes sure the business operations can continue as normally as possible, while the ownership of the business changes hand. Most often succession plans deal either with leaving the business to family members or selling the company to someone else. Why should entrepreneurs have a succession plan? When entrepreneurs start planning for their business, the questions of what happens to your business after you stop working are naturally not the first thing on one’s mind. But succession planning is as essential for ensuring business success as having a proper plan for run... ... middle of paper ... ...ur retirement, having a plan in place beforehand can save you from a lot of hassle, as well as be financially more effective. You also want to make sure your employees are aware of your plans well before you stop business operations. You need to be aware of certain contractual requirements and responsibilities for both your clients and your employees. Voluntary liquidation is often the final option for business owners and you should make sure you explore the other two options above before going with voluntary liquidation. This final route can also cost a lot more than the other options and it’s therefore wise to look into the other two options first. The cost in voluntary liquidation are higher because you might need to pay extra compensation for employees, and the complete dissolving of the assets and operations costs more than transferring them to another person.
Open Document