How Succession Planning Can Help Avoid Business Disputes
As you are running your business on a day-to-day basis, you may be able to take the necessary steps to ensure your company is not involved in any disputes. Unfortunately, there may come a day when you have to step down as the face of the business and let someone else take over.
If you do not take the appropriate steps now, the transfer of the business could result in many disputes. This is particularly true if you are running a family business. Below, our Knoxville business and commercial law attorney outlines the steps to take to mitigate damage to your business and ensure a smooth transition in the future.
Identify the Traits of a Qualified Successor
The first step in succession planning is determining why it is even important. You have worked very hard for many years to maintain and lead the business, and you need to make sure anyone who takes over for you will do the same. The question when identifying the traits you want in a qualified successor is what exactly determines what is ‘best’?
For you, this could mean a certain number of years of experience and the credentials you hold most important. You may also want to choose someone who is accountable, honest, wise, direct, approachable, and decisive. Regardless of the characteristics most important to you, it is critical to identify which are non-negotiable to you.
Prepare the New Leader in Advance
Disputes are most likely to arise when the new leader or leaders of the business have not been properly prepared. Again, this is especially true in family businesses. After you have chosen your successor, you must make sure they have the experience and knowledge to take over if you pass away or if you retire. Ideally, this process should begin years before you expect to step down. Not only will this prepare your business for the future but it will also give you more freedom to go on vacation, take a sabbatical, or simply limit your responsibilities to have more time off for family.
People often do not want to think about the future, particularly one without them in it. For many, this seems morbid. However, failing to consider the possibilities or putting a plan in place only creates resentment, chaos, confusion, and costs for your successor. Understanding that you will need to step aside at some point in the future does not have to be depressing. In fact, it can be just the opposite. It can help you focus on your golden years while knowing your business will be safe and sound.
Our Business and Commercial Law Attorney in Knoxville Can Help You Plan
Business succession planning is critical to ensure your company thrives in the future. At Atkins Brezina, PLLC, our Knoxville business and commercial law attorney can help you through the important steps to make sure what you have worked so hard for is protected. Call us now at 865-500-3121 or contact us online to request a consultation and to learn more.