Step by step guide to creating a business succession plan for your business

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The succession of a business must be done in advance, with planning, integration of the entire team and a lot of patience.

To do this, putting together a business succession plan can be essential.

This planning aims to consider all aspects of the business, changes necessary for the adaptation of the new successor and adjustments that must be made so that this change is carried out in the best possible way.

Check out what to include in your business succession plan so that you can make this transition in the best possible way.

Why create a business succession plan?
Business succession is one of the most challenging stages for mature companies that are already established in the market.

This is because the wrong choice or the jordan phone number lead inclusion of a successor without the necessary preparation can cause conflicts, affect the work environment and even end the company.

One way to avoid conflicts and difficulties in adapting is to draw up a business succession plan.

This tool helps to make a gradual transition, preparing the team, successor and former manager to face the challenge with ease.

If you own your own business and still don't know what to do to make sure your company continues to exist without you , know that the sooner you prepare for this, the better.

family business management
What should be included in a business succession plan?
There are three types of business succession : family, labor and through acquisition of goodwill.

Each succession will require different needs and arrangements, but there are some points that are important and should be included in your business succession plan, regardless of the type.

They are:

Possible debts
Depending on the business model and type of company, the successor may become responsible for all debts recorded in the business.

Therefore, it is essential to prepare a balance sheet and establish all debts, amounts and deadlines, so that everything is clear between all parties before closing the deal.

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Change in the membership grid
The inclusion or removal of a partner changes the percentage of the company's capital for all partners, as well as the demands of each one.

Therefore, when the number of partners changes, or when there is a change in the type of company , this information needs to be included in the business succession plan.

Transition strategies and operations
Like other business demands, succession also requires planning and preparation in advance.

Activities cannot stop and the company must continue to operate even with a change in management.

In addition to new targeting policies, creating strategies for operations during the transition phase is essential.

If managers don't know how to do this, having the support of a business consultancy can help.

This alignment, in addition to providing guidance to the current manager and his successor in the organization, can help to include the entire team in the process, motivating employees to cooperate and accept the change more naturally.

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Defining and preparing future leaders
Regardless of the type of succession, it is necessary to establish the parameters, training and other skills of the new successor.

In the case of family businesses, this point is even more important.

The successor should not be chosen based on proximity to the current manager but rather on merit and experience.

Therefore, the business succession plan must define the characteristics of this manager or the possibilities of preparation and instruction so that this leader can meet all the needs of the business.

One way to facilitate this process, especially with young successors, is to bring forward their entry into the company so that they can learn the main functions, get to know the day-to-day running of the business, become familiar with the team and gain experience.