Why Succession Planning is Important
Nobody likes to think about what will happen upon their death, but it can be quite important to make sure that a legal document, such as a will or estate plan, is left for surviving family members and attorneys in order to make sure your final wishes and requests are carried out as you intended. Succession planning follows the same idea, except instead of family members and personal assets, a succession plan is a detailed document which lays out the plan for your company or organization in the event of your death, a natural disaster, or the sudden resignation or retirement of a CEO. By drafting a succession plan with an attorney today, you can ensure your company’s continued success and buoyancy in the future, no matter what uncertainty it may face.
What is Succession Planning?
Described by William Rothwell as a “preservation of institutional memory,” succession planning is a well-considered, thought-out way to make sure your company or organization continues to perform consistently even after facing a crisis or loss. Creating a succession plan is beneficial in the short-term as well as the long-term, as it forces you and your partners to think critically about essential roles within the company, as well as identify potential successors, pinpoint possible red flags which must be corrected, and establish security and eliminate risks which may present future issues within the organization. In short, creating a succession plan is like creating a handbook for every “what-if” scenario your business may potentially face, leaving your organization or company invulnerable to virtually anything that may arise.
Does my Business Need a Succession Plan?
If you are a small business owner with fewer than 50 employees, you may think a succession plan is unnecessary, but succession planning can benefit businesses of all sizes by making sure all bases are covered for whatever life has in store. Even the smallest organizations can benefit from a succession plan if only to develop a disaster contingency plan for re-organizing or reopening their business after a crisis or natural disaster strikes. A succession plan is kind of like an insurance policy for your business, in order to guarantee that even if something happens to you or one of the other owners, the company you created will continue to function the way you intended.
Succession Planning Attorney Serving Thibodaux, LA
The succession planning attorneys at Waitz & Downer are here to assist you with your company’s succession planning needs. We offer succession planning advice to business owners in and around Thibodaux, LA and surrounding areas. If you would like to learn more about succession planning, contact Waitz & Downer for a free consultation today.