Lee R. Schroeder is an Ohio licensed attorney at Schroeder Law LLC in Putnam County. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at [email protected] or at 419-659-2058. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.
Every business should be prepared for when the current leader or leaders leave, for whatever reason. Proper planning allows a business to retain its industry experience, despite losing top personnel. The business must also make sure to maintain crucial relationships, such as those with customers, vendors and employees.
Business succession planning will at least include an attorney, accountant, lender, insurance agent, investment advisor and team of informal supporters. While the timing and structure of a good success plan will vary between businesses, good plans need to provide clear expectations to stakeholders and ensure that everyone’s focus is kept on the end result.
Without an incredibly deep and passionate attitude about work to begin with, a person will seldom be successful in starting or maintaining a small business. Because of that passion, entrepreneurs will seldom voluntarily retire. Such passion is laudable, but inevitably, we all are eventually forced to transition out of work due to either physical or mental challenges or through death itself.
If a succession plan for a business is not in place when that business’s leader or leaders voluntarily step away or are forced to resign or retire, the business will often either fail or see a significant downturn in its size and scope.
Read more about business ownership succession in Lee’s article for the Lima News, “Legal-Ease: Business ownership succession usually includes a plan.”
Source: LimaOhio.com, “Legal-Ease: Business ownership succession usually includes a plan,” by Lee R. Schroeder, March 25, 2017.