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The many benefits of early succession planning

You may have fond memories of your early days after starting your Texas business. Perhaps you were naïve and green, making many mistakes and teetering on the edge of disaster more than once. On the other hand, you may have had a solid plan in place that helped your realize profits from the start. Maybe you inherited your business from your parents or grandparents.

No matter how grand or humble your beginnings, you are now realizing you will not be at the helm of the company forever. You may resist the thought of stepping down, or you may have big plans for your golden years. Even if you are decades from retiring, it is not too early to begin preparing for the day when you will hand your business on to the next generation.

Success into the future

A strategic plan of succession can eliminate the negative impact your retirement may have on your business. While there is no one way to prepare for this succession, and you know your business dynamic better than anyone, it is fair to say that if you prepare well, your customers, employees, shareholders and family members may experience fewer and less severe disruptions, and you may achieve the following benefits:

  • Gaining loyalty among your staff by training and preparing them to take on more responsibilities
  • Building confidence among your clients who know your employees have the skill and competence to take over the business
  • Creating opportunity and incentive to continue growing the business even as you near retirement
  • Establishing a contract or agreement that can prevent expensive and damaging litigation over disputes caused by uncertainty
  • Being proactive instead of reactive as you move toward retirement

Another benefit is that you will have control of the process. If you should become ill, injured or pass away without having a solid succession plan in place, you may quickly lose control of all you accomplished. Your family may be left to struggle, and your business, if it survives, may go in a direction you had not anticipated.

Succession planning is not something that you can do in a day or even a week. Many careful entrepreneurs begin planning and implementing the succession of their businesses decades before the time comes. This is because no one can be certain of life's events. Taking the time to discuss the future of your business with a skilled professional may provide peace of mind to all involved.

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