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What are the benefits of Succession Planning?

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Besides the obvious benefit�not leaving your company in the lurch�proper Succession Planning will help your company in other ways, too. Here�s a rundown of the benefits. Remember, not all benefits will apply, depending on your specific situation. Succession Planning can:

Reduce taxes, in some situations with family-owned businesses. For example, if a company gets new ownership after an owner's death, lack of planning can result in steep estate taxes. Other tax issues, such as transferring ownership to a child, might apply.

Ensure continuity. Customers, clients, vendors, and employees all want and need to know that a business will continue to function as they know it, even when there�s a leadership change. Choosing and grooming a successor who fits your mold will help this happen.

Provide training plan for possible successors. If you identify who you might choose as a successor early, you�ll know that that person needs more training and one-on-one time with your current leader to gain as much knowledge for the position while it�s still possible.

Help you plan for the future direction of the company.

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