As both an Orange County estate planning attorney and a California business planning attorney, I see the results every day of failure to plan. Most people have the best of intentions to plan for the future, but it is human nature to put off thinking about our deaths. However, failing to plan for a successful business succession could result in the death of your business, affecting customers, employees and your own family.
Here are three common lethal errors in business succession planning:
Building the wrong bench – many business owners structure a management team based on what their business is today, rather than what customers will need tomorrow. This can be the wrong move in a rapidly changing business environment, when the next generation of management needs to be able to fulfill the needs of future customers.
Making it a competition – one of the quickest ways to create a destructive work environment is to play “jump ball” with managers on who will ascend to company leadership. Business owners who want to leave behind a healthy company should focus on building a strong team that can support the eventual successor.
Planning based on fear – most of us like to think we are irreplaceable, and worry what will happen when we are gone. Your focus in business succession planning should be on customers, employees and your family so you can create a succession strategy that will serve them best.
For more information on California business succession planning, contact our Orange County business planning law firm.
Your California legal and financial planning experts are at your service; Contact us today.