As a business owner, do you know who is going to take over your business after you have retired or if you decide to step down? Most of the time when a business owner decides they would like to slow down from working, they will usually have a child of theirs take over the business. This process is known officially as succession planning. Spring Hill business owners should be aware that many brick and mortar locations end up closing down because they do not have anyone to take over the business. Succession planning services are offered to business owners by certified accountants, as it is seen as a component of effective HR planning.

What is a Succession Plan?

In the simplest terms, a succession plan is a procedure that is set in place once a senior staff member decides they are leaving a business. Succession planning is something that is ideal for both small businesses and large corporations, as an owner or CEO could step down at any time. With succession planning, Spring Hill business owners might take the time to restructure their workers and management staff once the owner leaves and promotes someone else in their place.

When is a Succession Plan Implemented?

Some individuals might be wondering if a succession plan is implemented before or after a senior business executive is leaving? Even with a succession plans typically being followed once an owner or partner as has left, there is nothing wrong with letting staff know what is going with restructuring in the future. When a business is performing succession planning, Spring Hill business owners might not want to disclose to their employees that they plan on retiring or stepping down. Planning beforehand is often recommended for business owners, but telling employees is a matter of personal choice with those who are in charge.

*Disclaimer: The views expressed here are those of the authors and do not necessarily represent or reflect the views of Suncoast CPA Group*