Planning For Owner Succession In A Small Business

A succession plan is as valuable an asset (albeit intangible asset) as any other asset of a business. A viable succession plan can be a hedge against the devaluation of the other business assets or a reduction in morale or productivity. When interested parties know the intention of the owner, there is a feeling of stability and continuity.

Ideally, the business owner would like the luxury of knowing that the business will be passed along to a beloved family member. Perhaps a child, spouse, sibling, or close personal friend has expressed both a desire to continue operating the business and has demonstrated the necessary business acumen for continuing successful business operations. Other options include the sale of the business to employees, business partners, competitors, vendors, customers, and even total strangers.

A necessary step in the succession process is an accurate assessment of the business, including the current situation and expected future outcomes.

The relevant financial data including the value of company assets (as reflected on the balance sheet), and company income and expense information should be prepared in a transparent manner. Also, an honest appraisal of the future profitability and stability of the company must be presented to everyone.

The succession plan should be reviewed on a regular basis, at least annually, or at times of change. The longer the time of the planned exit, the more often the plan should be reviewed. There are numerous reasons that a plan may not be useful as time passes, and the business owner does not want a lot of “unforeseen circumstances”. For example, the original successor decides he or she does not want to continue in the business. The original owner may fall ill and need to leave the business sooner than anticipated. Certainly “what if” scenarios should be part of the plan.

There are many reasons why business owners refuse to prepare or delay preparing a feasible succession plan. The idea of a changing lifestyle, relinquishing control, or even consideration of one’s own mortality are reasons to not confront the inevitable life changes. However, if the business owner views the succession plan as a positive step that can benefit many people, the plan (and transition) can be a great experience.

This article was originally published on AdamMarquardt.co

Important Skills To Master As A Leader

There are some skills that those who want to lead must-have. Some people are born leaders and find the role of leadership very easy. Others may only realize they are leaders after facing many challenges. They have become leaders through all the skills and knowledge they gained along the way to becoming a leader.

Leaders have lots of self-confidence with a great ability to take the initiative in any situation while also being willing to take responsibility for every action they make personally. That means that leaders will finish a job no matter how tough it may be or how many obstacles they must go through. Leaders can also admit the mistakes they make and truly learn from them, using that knowledge to make sure they do not make those mistakes over again. Most importantly, leaders know how to move forward after those mistakes and get right back to working hard and doing their best!

The best leaders also realize how much of an impact they can have on the decisions and actions of those that choose to follow them. With that realization comes a commitment to help their followers make good decisions in a manner that is honest, fair, and positive. A good leader also has lots of energy and is persistent in accomplishing every goal with the ability to build good trust, credibility, and communication with other people.

Good leaders know that the success of any business or organization depends on all the employees that work hard to make it that way. Therefore, good leaders give those hard workers the responsibility to make important decisions. That responsibility gives them confidence that makes their work even better. Good leaders are also sure to praise those good workers which makes everyone even more effective.

A good leader has already learned how to manage their time and emotions. They know how to prioritize what is important in a way that is balanced and logical. What helps to make a leader great is their following, and a great leader knows how to create a vision that is compelling and clear to his/her organization. A great leader also knows how to use their own passion and dedication to their mission to inspire those around them to do and be their best every day.

This article was originally published on AdamMarquardt.net