There are 33.3 million small businesses in the United States.1 And if you’re one of these small business owners, you know exactly what it takes to keep the wheels in motion day after day after day. You know the pains and pressures of hiring the right team members, juggling all of the responsibilities it takes just to keep the business running, and trying to make the best decisions for your team, customers, and your family.
When you’re focused on the day-to-day of the business, it can be easy to forget the importance of succession planning. Many business owners are in the thick of it, not realizing that the succession planning process is a valuable part of their entrepreneurial journey—especially if they plan to have a business that outlasts their ability to run it.
At SageSpring, we believe that small business succession planning is a part of every small business owner’s successful retirement plan. And we’re here to help you understand what it is, why it’s important, and how exactly we can help.
What Is Succession Planning And Why Is It Important?
A succession plan is a comprehensive plan that outlines the steps necessary to ensure the continued success of a business after a change in leadership occurs. It is not only about who will take over the reins when you step down or retire, but also creating a roadmap for the future, safeguarding your business against unforeseen circumstances, protecting your investments, and nurturing your team members to thrive within your organization.
Creating a succession plan or exit strategy for your business is a great way to leave the company in good hands—especially in retirement. Having a plan helps you make sure you’ve done your due diligence in helping to plan for a successful future for the company you worked so hard to build.
Risks of Not Having A Succession Plan
There are many risks associated with not having a succession plan in place. Not only does it put a hold on your efforts to retire, but it also causes a lot of uncertainty within your organization. Your employees and team members may begin wondering how viable the business will be once you leave, who will be in charge, and how the business might change because of it.
Many times, companies that don’t have a succession plan when their owners step down experience much turmoil and even unnecessary turnover. Involving your key stakeholders, board of directors, management, and even your family members in the succession planning process will go a long way in making sure that you pass the baton in a way that serves the company, its people, and your finances well.
There’s No One-Size-Fits-All Approach
Just like with retirement planning, there’s no one-size-fits-all approach to small business succession planning. Every single business and business owner is unique and has different needs, business structures, and desires for the future of the businesses that they’ve worked so hard to build.
So, when it comes to creating a plan for your company’s future, it’s important to make sure you tailor that plan to meet the individual needs of your company. We at SageSpring do exactly that. We are extremely passionate about helping business owners just like you make a plan to “leave things better than you found it.” Not only that, we realize that succession planning can be an emotional part of every business owner’s journey—and we do our best to make sure that your business and your retirement journey will be one you’re proud of.
The succession planning process can start as early as you’d like it to. We believe the earlier you begin thinking about “finishing well”, the better. Reach out to your SageSpring Wealth Partner today. We’d love to be a part of your succession planning journey and give you confidence in the legacy you’re leaving along the way.
