California business owners understand the importance of planning. Every aspect of a business is something you must plan with care. Unfortunately, a lot gets lost in the details. People may not know what to prioritize either.
For example, do you know how early you should work on a business succession plan? Today we will look at the answer to that question.
Is it too early to start a succession plan?
The Harvard Business Review asks if your family business has a succession plan ready. Business succession plans are of crucial importance. They are important to small and family businesses in particular. And how early should you start creating a succession plan? Experts say as early as possible. In fact, many suggest creating a succession plan along with your business plan.
Benefits for you and your successor
In short, it is never too early to start working on your succession plan. It is valuable not only to you and your business, but also to your successor. Taking over a business is an important life change. Your successor should have many years to prepare for this task. This gives them time to tell if they want the responsibility, too. If they turn you down, you have plenty of time to find another successor.
As for you, you can rest easier with a succession plan in place. You will know that someone will take care of your business in the event something happens to you. Life is full of unpredictable ups and downs. You may fall ill or get injured. You may need to leave so you can look after a loved one. Whatever happens, you will feel grateful that you had a backup plan ready to go.