Who will take care of your business when you’re unable to?
To ensure the long-term health of your business, you have to plan for the future. The reality is the business and your employees need to know what will happen to the business and them.
Who will take over when you’re gone or if you lose capacity? How will the transition work legally and financially?
Who will take over when you’re gone? Who will take over if you’ve lost capacity? How will the transition work legally and financially? What skills gaps will need to be filled in your absence? What documents need to be in place to make sure the right person can step in if something happens to you? These are key questions to ask. A lot of people think about them when they’re in charge of a business, but do not actually take the initiative to address these issues in detail.
Knowing what to prepare for
When you’re trying to figure out what happens to your business when you die or lose capacity, you need to draw up a plan that is realistic and achievable. You need to check that your Company Constitution and any Shareholder Agreement deal with death and, more importantly, loss of capacity.
When you develop a succession plan, you’ll need to consider all the key questions. What personnel changes will you need to make? What’s the timeframe? What skills will your new people need to acquire? Are there any legal restrictions or considerations?.
Does your existing succession plan need to be updated?
Updating your plans as necessary
It’s ideal if you already have a succession plan in place. The key is to review and keep it up to date.
Long-term planning for your business is not a process to be rushed or neglected. Don’t put it off any longer!