What is Succession Planning?
November 20, 2017 by Hannah Thoms, CPA, M.S.F., CFP
Running a successful business for years or even a lifetime is a gratifying experience. Not only can you earn a very good living, but you can look back over a career that is filled with good decisions, good coworkers and good memories. But even the most faultless business owner eventually comes to the realization that, a) they cannot live forever, and b) it is better to plan for succession well ahead of retirement, than risk the future of their company.
At Gordon Advisors, we talk to people like you every day who see succession planning as a pretty grim proposition, not unlike writing a will or picking out a cemetery plot. But just as you take responsibility for obtaining your will and cemetery plot, succession planning is a necessary part of being a responsible business owner. A well-crafted succession plan can help to protect your company, your employees, future owners, and the legacy of your decades of hard work.
But what is succession planning really? Is it more than just leaving the company to your son or daughter or selling it? And when is the best time to begin the succession planning process? These are just a few of the questions you will have once you begin to think about creating a succession plan.
But don’t let the uncertainty prompt you to procrastinate. According to the U.S. Small Business Administration, about 70 percent of small business owners do not have a viable succession plan. As the baby boom generation reaches retirement, more and more organizations are being caught unaware when a leader suddenly decides to step down, or even worse, passes away.
If you are in that 70 percent, our guide, Anatomy of a Succession Plan offers an experts’-eye view of succession planning and what needs to be done to ensure the transition you want is successful and relatively painless.
Anatomy of a Succession Plan is a guide to the process of succession planning. You will find out what steps to take to build a succession plan, so it is in place well before it is needed. It reveals the key considerations for an internal succession plan as well as how to realistically value your company for sale. And for those in the nonprofit world, it profiles the unique needs nonprofit organizations have when planning leadership succession.
These are just a few of the many complex and important aspects of effective succession planning provided in Anatomy of a Succession Plan. Written by Gordon Advisor’s Chief Operating Officer Jeff Farrington, MSM, and Principal Hannah Thoms, CPA, MSF, CFP®, who have a combined 40 years of experience in financial planning, the publication will help you ask the right questions, get the right answers and begin planning your company’s successful succession.
This handy reference document is a must for every business owner who wants help starting the conversation about succession planning for you and your company. Don’t wait! Get your free copy today!