As a small business owner in Maryland, you know there are many important things you have to do and remember just to stay afloat. It took a significant amount of effort just to get to where you are and reach a certain level of success. While you may have no plans to leave your business any time soon, it is still beneficial to think about what may happen down the road.
Succession planning is an important step for every entrepreneur, regardless of where your business is or what you think may happen in the future. When you have a plan in place, you can have peace of mind from knowing that your interests are secure and your company can have operate successfully for years to come. If you do not have this type of plan in place, it may be prudent to work on one soon.
What’s in your plan?
Every smart succession plan is different, and what will work for you depends on your goals for the future and the unique nature of your business. When you are creating something that will work well for you, it may help to consider the following steps:
- Choose who will succeed you – Whether it’s a trusted employee or a family member, it’s beneficial to be very clear in your plans if you have a specific person in mind to follow in your footsteps.
- Start training your successor – It is also helpful to spell out how that person can step into your role seamlessly by giving step-by-step instructions and offering training. You can even start that process now.
- Set a timeline for when you want to leave – Whether you want to sell, retire or pass the reins to someone else, having a prospective timeline in place can be helpful as you make plans for the future of your company.
- Think about when to initiate the plan – The benefit of having a succession plan is that you get to decide what will happen to your company in the future. This includes deciding when and how to implement certain parts of your plan.
These are important choices that will have a significant impact for your company, yourself and those who work for you. They can also impact your heirs and beneficiaries. Because of what is at stake, it may help to discuss the terms of your succession plan with an experienced business law attorney.