If you own a business in Virginia, succession planning will play a significant role in your estate plan. You will want to make sure you have clear directions for your predecessors to follow in regards to the operation of the company you have worked so hard to build.
Taking time to plan for the longevity of your business can provide you with confidence and reassurance that your legacy is in good hands.
Aspects of succession planning
Succession planning is a lot more than choosing someone to fill your shoes if you suffered incapacitation. According to Fidelity, while there are many topics you could discuss in your succession plan, a few key elements include the following:
- Processes to retain employees who play critical roles in your company’s success
- Processes for delegation of authority to new organizational leaders
- Processes for providing potential leaders with ongoing support, training and incentives
- Processes for collaborating with third-parties to prevent conflicts of interest
Perhaps the most important concept to remember as you plan, is to envision the future for your company. What legacy do you wish to leave behind? Which core values do you want to guarantee remain throughout leadership transitions? Are there strategies or intellectual property you want to keep confidential? Addressing these aspects can help you streamline your planning process so you can make confident and informed decisions.
Keeping your plan updated
Throughout your life, significant changes may alter your original succession plan. For example, events such as partnership changes may negate your prior plans and require you to establish a new or updated strategy. Proactively addressing these changes can help you avoid disappointment and potentially costly litigation that could damage your company’s success.