As a business owner, you probably spend a lot of time dealing with day-to-day operations. You may have a plan for the future, but what will happen when you decide to retire or to move on to another business venture? Succession planning is one of the most important things you can do to protect the future of your business and ensure it is set up for success. At SD Associates, P.C., we’re committed to helping our clients successfully navigate the process of succession planning. Let’s explore the process and how our financial experts can help. 

What is Succession Planning?

Succession planning is the process of determining what will happen after a company’s leadership leaves the organization, whether that’s due to retirement or leaving for another business opportunity. Many business owners put plans in place that dictate who will assume their responsibilities, as well as who would replace other key players such as the CEO. Succession planning can be useful even in the event that you do not leave the company: if one of your major employees leaves, you’ll already have a plan to keep your operations on track. 

Steps in the Succession Planning Process

Choose Your Successors 

First, you’ll need to identify who will assume the responsibilities of any key roles. For example, if you are the business owner, but also act as the CEO, you’ll need to determine if you will sell the business and to who, as well as who would assume the role of CEO. You can also choose other key employees to plan for, such as presidents, vice presidents, and other integral positions. 

Focus on the positions that would be either the hardest to fill in a timely manner or that are essential to your operations. Ideally, you would begin to train replacements as soon as possible so they can seamlessly transition to their new positions if or when the current employee exits. 

Make a Plan For Stakeholders

A business’s owner or founder isn’t always the only person with an interest in the company’s financial success. Even as a privately-owned business, you may still have workers or other players with a share – for example, you could have purchased the business from the founder, but they still get a share of the profits. If you co-own the business, you’ll have to work with your co-owner to determine the future of the business. 

You have several options when choosing what to do. Many business owners opt to leave their company to family members, while others sell it to another business or even organize a buy-out program with their employees. If you’re not sure what you would like to do with your business, our financial experts can provide guidance. 

Consult With Experts 

Whatever you choose to do with your business, it’s essential to consult with experienced professionals. At SD Associates, P.C., we know how important it is to prepare your business for future success. We can help with preparing documents for transfer of ownership, management, and more. We can also advise you on the financial ramifications of selling a business and how it will affect your tax filing. 

Contact SD Associates, P.C. Today

You don’t have to leave the future of your business up to chance. Contact SD Associates, P.C. today at 215-517-5600 to learn more about our financial services.