When a company is in the process of changing up management or the structure of their employees, it is commonly known as succession planning. Trinity business owners might have a hard time defining what succession planning is, or what its objectives are not because they do not understand it, but often times because succession planning is different for every business. At the most basic, succession planning is the process of coming up with guidelines for how your company is going to handle the transition from different management. This could happen when a boss decides to retire or step down for personal reasons, or if something happens unexpectedly.

Creating an Orderly Transition

Regardless of whether your business is a small brick and mortar location or a large corporation, a change in management or upper authority can drastically change the dynamic of your business. In order to avoid time lost and money well spent, it is often a great idea for a business owner to prepare for succession planning. Trinity business owners should be aware that the more time they give themselves to prepare for a change in management, the less jarring it is going to be for both senior officials and employees.

Finding a Capable Replacement

When a business owner is in the process of succession planning, Trinity residents should be aware that finding a replacement for the individual who is leaving is not the problem, but finding someone who is capable is. If a company does not have a replacement readily available for a position, they are going to have to hire a new individual, or take the time to train an existing employee to fill that role. This is why it is so important to have ample time when looking for a replacement through the framework of succession planning.

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