The Do's and Don’ts of Succession Planning
Succession planning is a long-term process, not a one-time event. For the well-being of yourself, your company and your clients, it is imperative to start as soon as possible. Here are a few do's and don’ts that come with succession planning.
DO ensure that your practice has a life beyond your own for the benefit of your clients. It is important that your clients know they will be taken care of long after you are gone.
DON’T wait to do it. You can’t wait to strategize succession until you’re ready to retire if you want to maximize value. For example, if a person wanted to retire at 60, it would be smart to start the process when they are 50.
DO involve an evaluation analyst into the plans. They will be able to create a methodical approach that is consistent with the value of your business. Having an outside view of the company from an independent analyst will ensure that you have a mediator to see both sides of the objectives.
DON’T forget to include the people who will be the successors in place. Not everyone has the same objectives, so it is important to make sure that yours are aligned with the people assigned to take over.
DO document your strategies that have been identified for future use. Make sure the plan is written down and can be easily referred to later on.
DON’T think this will be easy or take little time. Succession planning is a key factor in ensuring the value of your company. Taking these tips and applying them to your future plans will not only benefit your company, but also your peace of mind.