Recent years have seen an explosion of interest in living or running a business in Over-the-Rhine. Whether you have been here for years or have recently moved to the area, if you own or manage a business here, you likely want to protect that business, even in the event that something happens to you.
Many people understand the importance of creating an estate plan to protect their wishes if they die, and quite a few people even make living wills to protect their medical and financial wishes if they can’t speak on their own behalf.
Succession plans can protect your business
Running a company means assuming a lot of work and authority, as well as legal and liability concerns. Unfortunately, not all business owners or those in an executive or managerial position consider the potential impact of their death or medical incapacitation on the business.
Creating a succession plan that outlines the work that you do for the company can help ensure a stable and painless transition to the person who takes over for you. It can also help when you’re ready to take a new job or retire.
Succession planning involves a detailed exploration of job duties
Something many executives say about their job is that not just anyone could walk up and start doing it. Part of that, of course, is due to their expertise and experience. However, one of the reasons people will struggle with stepping into a managerial role will be a lack of knowledge about what exactly you do for the company.
Your succession plan should explain the tasks that you perform for the company on a daily basis, as well as weekly, monthly and annual obligations. From paying insurance premiums to performing performance reviews for staff members, the many roles that you fill should be part of your succession plan.
You should also include details about how to access important accounts for the business and files within the computer system, as well as any other information that someone will need to operate the company.
A succession plan can include documents that empower others
Some people begin creating a succession plan as they transition out of a position at a company. Others create one as a way to protect the company in the long run. Regardless of when you start planning, chances are good that you don’t want to immediately authorize someone else to assume your authority in the company.
Creating a succession plan can include legal documents that authorize someone to take action on your behalf or on behalf of the company. From transfer documents that give someone an ownership interest in the company to power of attorney documents that authorize them to act in your stead, there are many options that can prove useful during succession planning.
The sooner you begin the process, the sooner you will have the peace of mind that comes from knowing that your company is protected no matter what happens in your future.