Business Day

A Good Plan is Key to Successful Succession

Succession planning is a key element to the long-term success of any business venture, and a special challenge for the small business owner. Today with a bow-wave of baby boomers nearing retirement age, such plans are more important than ever, however, most small and family business owners are so wrapped up in day-to-day operations that little time is left for the all important task of charting out the future of the firm.

"Far too often, succession planning is an afterthought," said Ron Johnson, chair of the International Business Brokers Association (IBBA). "It can certainly be an emotional issue that a business owner doesn't want to face. They don't want to think of their business going on without them."

Johnson says don't put it off. "A succession plan is important when you retire," Johnson said. "It's just as important if there's an unexpected illness, disability or even death."

IBBA offers these tips:

  • Bring in outside experts. Hiring the right professionals -- including a business intermediary -- will help you ensure you have the best possible succession plan. They will look more objectively at the business and your goals.
  • Involve family members in the planning process. Developing a succession plan and simply announcing it to the family will only bring discontent when you unveil the plan.
  • Train your successors and work with them. Take time to work with the person selected to take over so he or she knows what's needed to keep the business successful.
  • Look at all options. Consider that management and ownership aren't necessarily one and the same. You may look to one family member as a manager, but transfer ownership equally to several members of the family.
  • Be realistic. Of course you want to turn the business over to your eldest son or daughter so they can follow in your footsteps. But carefully consider if that's the best option. Consider another family member, someone else within the company, or selling the company to an outside party. A business intermediary can guide you through the transaction process.

Deciding who will follow in your footsteps is a critical decision.

Deciding now to begin the succession planning process is the first step.

See more from Business Day


Other Pages You Might Enjoy...

The Meissen Porcelain Manufactory
For more than 300 years the Meissen Porcelain Manufactory has been a central figure in European porcelain. It was at Meissen that the first true hard-paste porcelain was manufactured outside of China, and the story of that accomplishment has the high drama of fiction - all the more intriguing because it is true.

Pirated Glassware that Collectors Want to Own
The 1996 discovery of what is believed to be the wreckage of Blackbeardís ship Queen Anneís Revenge, is providing historians and collectors new information about the fragile and transparent objects that came onto the North American Continent before arrival of the first piece of cut glass.

Collecting Antique Furniture
Of all the collectible antiques, the broad category of furniture is perhaps the most widely held and most satisfying. Frequently handed down through generations, the various chairs, tables, cabinets and other pieces are often in use, adding character and constancy to our daily lives. This guide includes an overview of the significant styles and historical periods, and other important information for collectors.

Collecting Antique Clocks and Watches
Information for collectors of antique clocks and watches. Includes a history of clock and watchmaking, an overview of styles, and important terminology.

Collecting Antique Jewelry
Embodying the wealth and treasure of bygone days, the antique jewelry pieces available today include some of the world's most valuable artifacts. Includes a history of jewelry making, an overview of the major historical periods, and a glossary of antique jewelry terminology.

You Can Raise Your Credit Score
Is a low FICO score is preventing you from getting a loan or forcing you into accepting unfavorable terms and rates? Is so then there are simple, ethical steps you can take to repair and restore your credit.

Size Does Matter: Big Companies Retain Employees Longer
Research shows that employees at larger firms earn more and stay longer than those working at smaller firms.

Are Get Paid To Shop Opportunities for Real?
Genuine mystery shopping opportunities exist, but job seekers beware - there are plenty of scammers out there looking to take advantage of you. If you are looking for a chance to work at home and set your own hours, be sure to check out these valuable tips for getting started as a secret shopper and finding real jobs.

Researchers Crash Through Solar Efficiency Barriers
Funded by a U.S. government research grant, a consortium led by the University of Delaware is making great strides forward in solar electric generation and is well on it's way to achieving its goal of 50 percent efficiency.

The Net Generation Would Forgo Television Over Internet
From self image to career choice to favorite media, a 2007 survey of people between the ages of 16 and 29 from 12 different countries studies the habits of the Net Generation and draws some fascinating conclusions.

Alaska by Rail
For the first-time Alaska visitor, stepping aboard a train bound for the wilderness is the beginning of a journey filled with adventure and surprise.

Alabama's Gulf Coast 3rd in Top Ten U.S. Destinations For Overall Golf Value
Championship caliber golf courses of the Alabama Gulf Coast recently ranked third in the Overall Value for the Money list, as compiled in Golf Digest's 2008 Travel and Destination Study. This study measured consumer's awareness and experiences in 37 golf destinations. The Gulf Shores and Orange Beach area ranks alongside Alabama's Robert Trent Jones Trail and Myrtle Beach as one of the nation's top value golf destinations.

Reverse Mortgages Can Leave You With Nothing, Expert Says
Aging baby boomers are being aggressively marketed for long-term care insurance funded by reverse mortgages. Lawyer Frank Darras says beware. Betting your house on an insurance policy can backfire and leave you with nothing, he says.

Finance Professors Don't Practice What They Preach
A recent survey of finance professors from universities across the United States revealed that most use passive techniques such as mutual funds to manage their own wealth. Those that do trade actively perform only basic screens on fundamentals, avoiding the complex pricing models so often advocated by professional investment advisors.

Five Easy Tips for Saving Money on Gas
Even small increases in fuel economy can add up to big savings.



The MiFio Network

Visit cache.MiFio.com for more pages about business, technology, programming, home, travel and more.

Visit www.MiFio.com the website dedicated to antiques and collectibles.

Blue Ridge Review - Test prep resources. Blue Ridge Review has helped thousands of students prepare for college and graduate admissions with free tutorials, tips and study aids.