{"id":3922,"date":"2012-11-14T09:40:48","date_gmt":"2012-11-14T16:40:48","guid":{"rendered":"https:\/\/www.keypersoninsurance.com\/"},"modified":"2024-12-12T22:15:37","modified_gmt":"2024-12-12T22:15:37","slug":"succession-planning","status":"publish","type":"post","link":"https:\/\/webdesign.quoteplicity.com\/keyperson\/succession-planning\/","title":{"rendered":"Business Succession Planning: A Step by Step Guide"},"content":{"rendered":"\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Just like the \u201ccycles\u201d of life, every business must go through \u201ccycles\u201d and face different challenges as it grows and matures. For established companies, business succession planning becomes an essential next step to ensure continued growth and long-term stability.<\/p>\n

Every business owner that has achieved any level of success knows that building a viable company requires dedication, commitment, hard work, and even a little luck. For most, it takes years of sacrifice, discipline, and consistent focus, not to mention blood, sweat, and tears.<\/p>\n

If you are reading this, you have climbed the mountain, or at least gotten a long way up the hill. The fruit of your labor is a stable organization with consistent revenues and sustainable growth. Now that you have achieved these coveted goals, it is time to establish a business succession plan that guarantees the ongoing success of your company regardless of future events.<\/p>\n

How can you fail to plan for the effective transition of your business, the one thing you have dedicated so much time, energy, heart, and soul? This step by step guide will help you to ask the right questions and begin to develop your business succession planning strategy. Start NOW<\/u><\/strong><\/p>\n

What is Business Succession Planning?<\/h2>\n

Business succession planning, sometimes referred to as business continuation planning, is the process of determining the primary goals and desires of the business owner(s) when it comes to the ultimate disposition of their business interest.<\/p>\n

A properly structured plan addresses all potential contingencies<\/a> that may compromise an organization\u2019s ongoing viability, including but not limited to, the death, disability, or retirement of an owner or key executive or the eventual sale of an owner\u2019s equity interest. In essence, the succession plan is the blueprint for the efficient transition of management and business ownership.<\/p>\n

A\u00a0 succession plan usually includes a buy-sell agreement<\/a>, which is a legally binding document that covers all of the \u201cwhat ifs\u201d that may threaten the ongoing operations of a company. A strong buy-sell agreement is comprehensive and considers all legal and tax-related issues. The primary purpose of the \u201cagreement\u201d is to outline and define, in advance, what is to happen in the event of the death, disability or retirement of an owner or the sale of an owner\u2019s business interest.<\/p>\n

\"Business<\/p>\n

Why is Business Planning Important?<\/h2>\n

The following are just a few of the many reasons why business succession planning is so important.<\/p>\n