If You or Another Key Employee Passes Away, Will Your Company Survive? The Necessity of Succession Planning
of the business. If the loss of these key employees is certain to result in the loss of loyal clients, funds should be put aside to keep the company afloat during the transition. Financial products such as life insurance or disability insurance can help offset the burden of these unforeseen costs, as well. Don’t let unexpected circumstances jeopardize your well-being or the well-being of your employees. Set aside time to carefully construct a succession plan to ensure everything is taken care of, regardless of what may come.
As a modern business owner in the midst of the daily hustle and bustle, it can be all too easy to overlook important considerations in the longevity of your company. Chief among these frequently missed concerns is incorporating a succession plan into your company structure to plan for the eventual loss of key employees. This process involves not only selecting and training potential successors properly, but allocating financial resources to cover the expenses related to the shift. It can be difficult to even think of putting a succession plan in place, but the fact remains that such a plan may end up being the most vital factor in your company’s continued operation. Without an adequate succession plan, the loss of a key employee is almost certain to cause your company to suffer a widespread blow. Business owners should begin creating a succession plan much sooner than they probably realize — as soon as the company reaches profitability, in fact. At that point, your business is more than a simple startup; it’s a source of livelihood for your employees and their families, not to mention your business partners, investors, or suppliers. When building your succession plan, make sure to allocate funds to pay for estate and other taxes in the event of a founder’s death, or, in a partnership or closely held corporation, to buy out the partner’s share Have something you’re procrastinating about? Put it off for just a fewmore seconds with these fun facts. • Ever wonder where your bananas get their bend? The answer’s simple: They grow toward the sun. • Sharks may be scary, but maybe save the side-eye for your phone. More people in 2015 were killed by selfie accidents than shark attacks. • Speaking of fear, that aversion to sharks isn’t instinctual. The only two fears that are innate in human biology are the fear of falling and the fear of loud sounds. Every other fear is learned. • The elephant is the only animal on Earth with four knees, and they can’t jump. • Oh, and lightning strikes the earth 6,000 times a minute.
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