What is Succession Planning?
Creating a Succession Plan for Your Naples Business
It is important for every Naples business owner to engage in succession planning. Read below for more information about succession planning.
What is a Succession Plan?
A succession plan is a business planning document that creates a roadmap of what should happen if an owner or key employee passes away, retires, resigns, becomes ill, or gets fired. It lays out how the business will handle a transition in ownership. Through the process, you identify and develop individuals to fill leadership roles and other critical positions when they become vacant.
How Do You Create a Naples Succession Plan?
Many small business owners put off making a succession plan because they don’t know where to start. Thankfully, business owners do not need to tackle this task alone. An attorney can guide you through the process step-by-step. James R. Nici is an experienced business planning attorney who will help you create a business succession plan that fits your needs while taking into account all the complicated tax and legal issues.
Below are five steps to take when creating a business succession plan in Naples.
1. Know Your Business Vision and Plan for Growth
Succession plans are not one-size-fits-all. To create the most effective succession plan, you should take time to understand who your company is. You should identify your business vision and plan for growth so that you can create a succession plan tailored to your small business.
2. Identify Critical Positions in Your Organizations
The second step is to identify the roles in your company for which you need a successor(s). Critical positions could include senior leadership employees or positions that are difficult to fill. It is important to realize that sometimes key positions are not in upper management. Consider each position’s day-to-day impact and the effect their departure would have on your business.
3. Pick Your Successors
After identifying your key positions, you should pick two or three employees who would make good successors for each of these roles. You should consider each employee’s skills and personality traits, regardless of their current title.
4. Offer Opportunities for Professional Development
You should invest in the professional development of your potential successors. Give them the opportunity to learn the skills needed to succeed in the position. It is easy to have a singular focus on the day-to-day of running the business, but it is critical to invest in the company’s future.
5. Discuss the Plan with Employees
You should discuss the succession plan with your employees. It is important to understand their career goals and what development they feel is necessary to reach their potential. These conversations can go a long way in promoting employee retention and improving company culture.
Who Needs a Succession Plan in Naples, Florida?
Some people assume that succession plans are only necessary for large corporations when, in fact, a succession plan is just as, if not more important for, small businesses. Below are three reasons every Naples business owner should have a succession plan.
1. Ensure a Stable Transition. A small business is most vulnerable when there is a change in ownership, especially if the change results from an unforeseen event, such as an unexpected death or sudden health issue. Without a plan, your heirs may be forced to sell the business, or with no direction, the business may fail over time. A succession plan will help your business survive and thrive after a transition in ownership.
2. Promote Training and Development. When you create a business succession plan, you are forced to take a step back from the day-to-day and consider the long-term goals business. Through the succession plan, you can promote the training and development of your current employees to ensure that they can fulfill leadership roles when they arise.
3. Improve Employee Engagement. When employees know there is room for advancement and a future for them at the company, they will be more committed and loyal to the business. Productivity will increase and the business is more likely to retain employees. Leadership and employees will be able to share the company’s values and vision.
Call A Naples Business Planning Lawyer
If you have questions about creating a business succession plan, you should contact an experienced Naples business planning attorney. James R. Nici is an experienced Naples attorney with over 25 years of experience. He has experience with these issues and can create a succession plan that fits your needs. Contact our offices today at (239) 449-6150 or use our web form to set up a free consultation.