Key Questions to Ask During Business Succession Planning

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Key Questions to Ask During Business Succession Planning

by Frank L. Brunetti on August 30, 2013

Succession planning is an essential component to business continuity, a smooth

transition, and effective estate and tax planning. However, when there are several

individuals under consideration for the job, making a decision can be challenging when

there is a great deal at stake. Similar to making important decisions about investments,

home ownership and other large financial events, asking simple questions can help

business owners assess their options and make more informed decisions.

For instance, owners can begin by questioning which of their employees has the best

disposition, training, and inherent skill for both managing a company and taking it to the

next level. Many small businesses - especially family-owned - may automatically

consider a relative or a person who has been a leader's right-hand man as next in line, a

recent Forbes article noted. However, this does not automatically mean that the person is

the best for the job, and acting on emotion rather than business mentality can lead to

leadership problems in the future. Instead, owners may benefit and protect their life's

work by choosing a person who has the best skill set to handle the challenges of

ownership.

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