It’s easy to imagine executives at corporate giants grooming successors and worrying about the legacy they’re leaving behind. However, succession planning is actually important for businesses of every size in the Detroit, Michigan, area. Without a plan for how to pass power on or who will take over in the event of an emergency, any company’s future is at risk.
Benefits of succession planning
It’s important to have an exit strategy in any industry. If you own a business, you have a valuable asset that can be sold to help fund your retirement someday. If you’re planning to pass a company on to a younger relative, that will still require sounding them out to ensure they want it. Preparing them to take over can also be a lot of work.
What’s more, succession planning is important for even the smallest businesses if the owner is injured or otherwise indisposed. It doesn’t just impact high net worth people. For example, a dog-walker who breaks their leg could find themselves out of business if they don’t have a friend or family member to take over for them in the short-term.
It’s also a best practice to have any business valued by professionals every few years. Many times, it’s possible to have a valuation done as a free service. For example, some commercial real estate firms will provide free valuations of businesses like hotels and apartments in an effort to build a positive relationship and one day work for that client.
Succession planning is something that an attorney should be consulted about. Someone with experience in business law, like attorney Jay Schwartz, may be able to help you create a custom succession plan that works for you and your company. They may be able to help you devise a plan to streamline transition when the time comes and protect your own interests effectively.