If you have grown a startup venture into a successful company, you undoubtedly have an eye on the future of your business. Eventually, you may want to retire or step aside to focus on something else. Having a comprehensive business succession plan is an effective way to foster a smooth transition.
Unfortunately, there are many misconceptions about business succession planning. Still, you should not let any of the following three myths dissuade you from doing what is best for yourself, your family, your colleagues, your business or your customers.
Myth 1: Succession planning causes problems
While succession planning may be an uncomfortable topic for you or some of those close to you, it is also a direct path to reducing future conflict. When you establish a framework for the future of your venture, you give some certainty and even peace of mind to interested parties. Naturally, this may help reduce partnership or shareholder disputes.
Myth 2: You have time to procrastinate
You have plenty to do without looking for additional work. Still, you do not want a succession crisis to land on the doorstep of your business. By planning early, you have a roadmap for dealing with unexpected events, such as the death of an essential employee, and do not have to come up with a rushed one.
Myth 3: You can always just sell
Most business owners have the option of selling their ventures. This fact is an argument for succession planning not against it. After all, you may not be able to find a buyer willing to pay your asking price during an acceptable time-frame or in the middle of a crisis.