In order to guarantee the business continuity of their creation, entrepreneurs should consider specific solutions not only to transfer ownership of the company - or shares - but also to prepare the successor to take over full responsibility. This not only creates added value for years to come but also guarantees the fate of employees' salaries, institutional continuity, relations with partners, subcontractors, etc.
However, a well-prepared succession plan is something far beyond a business "last will". It enables not only formalization of relations within the family of the person leaving the company, but most of all preparation of the successor to smoothly take over full responsibility.
The worst situation for a business is uncertainty - this is a statement that probably few entrepreneurs will not subscribe to. Succession is a mechanism that allows preparing in advance both the closest ones and possible partners for the moment when the owner is no longer at the helm. Thanks to prudent planning, not only will the existing continuity of production be preserved, but first and foremost the vision of the enterprise's development and the values which have been the foundation of its success. What is not without significance, in this way the institutional continuity of the company is also guaranteed, which will make it easier to deal with authorities or fulfill obligations and contracts.
On a humanistic level, it will enable the retention of loyal employees and market contacts. However, perhaps the most important advantage of the planned transfer of the company is the protection of its stability. Stability, on the other hand, can lead to dilution of shares and loss of decision-making power and thus to a serious crisis within the company.
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James Horst
Roof Restoration Glen Iris
Frankfurt, MO
USA