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When Should You Develop a Business Succession Plan?

On Behalf of | Aug 20, 2022 | Business Succession

If you have only recently started your business, you might think it is way too early to worry about a succession plan. However, it is never too early.

Hopefully, you will not need someone else to take over the running of your business for years. Yet you cannot guarantee that. It only takes one car to hit you as you cross the road, one misjudgment while driving or one accident on the sports field to leave you incapable of continuing in your role. A succession plan is essential from the very start. Here are two tips to keep in mind:

Do not underestimate the potential of your business

Let’s say that aside from starting a business in the last few months, you have also started a family. Your company might not be making any money yet, but it hopefully will do in the future. 

There is no point in throwing away all the time and effort you made getting the business off the ground. Putting even a simple succession plan in place could allow the company to flourish and pay for your child to grow up.

You can change your succession plan over time

You envisage this business lasting for decades and hope your child eventually takes over. Yet if they are still in nappies, that is going to be a long way off. For now, you can nominate someone else to take over if you cannot continue. 

Once your child gets older, you can start to bring them into the picture, training them up and naming them as the person on standby to take control if required. Consider legal help to create your business succession plan and keep it up to date.

Notice: We are providing this as general information only, and it should not be considered legal advice, which depends on the facts of each specific situation. Receipt of this content does not establish an attorney-client relationship.