As a business owner, who would you like to see take your job if you’re no longer able to perform it?

Now, think about your top revenue driver. If they left the company, who would step up into their shoes? Is that person ready and willing to take on that extra responsibility?

These are the types of questions that succession planning strategies aim to answer before a business owner’s exit or before a key person leaves. Succession planning usually identifies successors within a business before they are needed to step into a more advanced role. This way your company can provide them with the training and experiences they’ll need to replace existing leaders at a future date.

Succession Planning & Exit Planning for Business Leaders

No one can run a business forever. Eventually, all business leaders have to step down (or will involuntarily retire due to death or disability). Rather than leaving their company to face an uncertain future without them, business leaders can make sure they leave their company in good hands –– as well as on their own terms. 

In order to do this, exit strategy consultation and succession planning must work together to reach a business leader’s goals. While exit planning is a comprehensive analysis of everything that will need to be done before a leader’s departure, succession planning is a more specific strategy under the “exit planning umbrella”. A good succession planning strategy focuses on how the leadership or management will be transferred in the event that a leader will leave an organization. 

Succession Planning for Key Person Loss

Leadership is important at every level of a business and succession planning that only addresses the CEO misses out on this critical component. So while you should think about who will succeed the leaders at the top of your company, it’s also important to devise a succession planning strategy for other teams that could experience severe disruption due to the loss of a manager or key employee, such as your sales team.

Before you lose a key person and need to replace them, you should ideally have a documented process for succession. When your employees can trust and understand this system, you’re likely to get more buy-in from your team and will experience less panic when it’s time to put the succession planning strategies into play. Further, you should also be willing to support your employees through training and development. As employees experience high-impact projects and test their judgment with a mentor by their sides, they’ll be more ready to take on these same tasks when their mentor is no longer there.

Ready to Develop Your Succession Planning Strategies?

Detailed exit and succession plans prevent costly errors and oversights from occurring when teams are disrupted by turnover. By partnering with an organization like Helm Financial, business leaders can gain access to vital services that will support both your goals and the goals of the business. 

Services like succession planning, executive compensation packages, key person insurance, exit planning, and our Rapid Protection Program provide our clients with extensive resources and advantages to ensure positive outcomes. 

Helm Financial is the only organization that is able to offer all of these services in addition to expert consultation. Our team has extensive experience and knowledge working specifically through the legal, financial, and logistical minutiae of exit and succession planning. Plus, we have strong connections with contacts who possess specialized knowledge in business succession law, taxation, and insurance coverage. 

Don’t wait to prioritize succession planning as a part of your exit planning strategy or a part of your overall business continuity plan. We’ll help you develop and implement a strategy that will benefit you, your business, and your team.  

Exit Planning Readiness Survey

If you’re considering leaving your position, knowing the steps necessary to leave the company in good hands is crucial. To find out how prepared you are to leave your business, take our exit plan readiness survey and receive customized resources tailored to your current status.

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Let us help you prepare for a successful business exit.

Contact us to learn more about our succession planning strategies and exit planning options for your company.