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4 Important Succession Steps for Your Ohio-based Business

4 Important Succession Steps for Your Ohio-based Business

21 Feb 2022

If you own a business in Ohio, the prospect of succession has likely crossed your mind yet you might have put it on the back burner for good reason.  As a business owner, you have a lot on your plate.  However, it is in your interest to carve out some time to implement essential succession steps sooner rather than later.  Our financial advisors in Canton, OH are here to help. 

Your business succession plan puts the essential steps in place to ensure your enterprise trudges forth without significant interruption even if the unforeseen arises.  Invest some time preparing your succession plan with the assistance of our financial advisors and you’ll rest easy knowing you have done your part to keep your business humming along like a well-oiled machine no matter what potential setbacks arise.

Succession Step #1: Establish a Plan

Comprehensive financial planning in Canton is applicable to both individuals and local businesses.  If you don’t have a succession plan in place for your business, your enterprise might come to a grinding halt in the event of illness, death, a natural disaster, or another unexpected event.  Be proactive by planning today and you won’t have to worry about being caught off-guard in the event of a setback.  

Take a moment to consider how your team would proceed if one of your managers or co-owners departed the business.  Consider how that departure would impact your operations.  Consider which individuals are most deserving of stepping into vacated roles.  Take a moment to think about the amount of training those individuals would require if they were to step in for an individual who left to pursue another opportunity, fell ill, or unexpectedly passed away.  

 

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Though you don’t have to create an in-depth organizational chart at this moment, you should have a general idea of which employees are most deserving of stepping into vacated authority roles.

notebook on desk with words are you ready for tomorrow?

Instead of focusing on the established hierarchy within your business, focus on each candidate’s unique skills, talent, and work ethic.  Instead of assuming such individuals are interested in upward promotion, meet with them ahead of time to get a sense of whether they value the opportunity for career advancement within the organization.  

Though few business owners and managers know it, some employees relish their current role and dislike the idea of promotion to a position that carries greater responsibility.  If the hard workers you select for potential advancement are willing to take on greater responsibility, make it perfectly clear they have been highlighted for advancement within the organization.  This is not to say you have to guarantee a promotion by a certain point in time.  Rather, the moral of the story is it is mutually beneficial to maintain open lines of communication with your most valued employees, making it clear that there is the potential for advancement when the time is right.

Succession Step 2: Plan for the Worst Possible Scenario

It is also in your interest to establish protocols and procedures for your company’s operations in the event of a natural disaster, network outage, or another significant event.  Detail exactly which employees will step up after the death or serious illness of a manager or executive.  Establish specific roles during emergencies and clarify the nuanced duties of each of those roles at the outset so everyone knows exactly what they should do if the unexpected occurs.

Succession Step 3: Ramp up Your Professional Development Efforts

Though the prospect of investing time, money, and effort into professional development isn’t the most appealing use of your limited capital, it has the potential to keep your operations moving along in the event of a disaster scenario.  The best businesses regularly invest in the professional development of their staff as time progresses.  The best approach is to invest capital in training your choices for succession with each passing year.  

If you sense one of your leaders or company co-owners is physically or mentally declining or aware that a “rainmaker” employee will soon depart, now is the time to step up your professional development efforts.  As an example, it will help to cross-train employees so they can contribute in different roles.  Rotate job duties and your candidates will expand their knowledge and skills while gaining invaluable experience.  This preparation sets the stage for your valued team members to enhance their soft skills and understanding of how the business functions from an alternative perspective.

Succession Step 4: Give Your Succession Plan a Trial Run

Instead of waiting for an unfortunate development, perform a dry run of your succession plan.  This preventative effort provides you and your team with the invaluable practice for a crisis scenario.  Lean on our financial advisors to help plan your personal finances as well as your business’s finances and you’ll have the confidence necessary to move forward with your succession plan in the event of a death, illness, employee departure, or another unexpected event.  

A solid financial foundation for your business provides you with the flexibility and freedom necessary to perform dry runs of your succession plan in a truly comprehensive manner, even if it means productivity suffers a temporary setback.  Once the trial run ends, review employee performance to get a sense of which specific contributors need additional development and training.

Tap Into the Right Wealth Management Strategies for You and Your Business

Our full-cycle investing experts are here to help you and your Canton, Ohio business enjoy financial success.  We account for inflation, stagflation, reflation, domestic economic factors, and even global economic influences to strategically invest your hard-earned money.  Let our investment advisors in Ohio help you plan for the future with full-cycle investing and you’ll have the confidence necessary to develop a detailed succession plan, implement that plan, and move forward without worrying about the unpredictability of the future.

At McGervey Wealth Management, we get to know you and your business on a personal level. To learn more about our full-cycle portfolio management techniques and how they can benefit your business contact us today.

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More About the Author: E. Michael McGervey, CFP®, CRPC®

Mike is passionate and skilled at helping clients solve complex financial challenges. He’s known for his thoughtful communication, educational approach, and exceptional customized service. Mike has been a sought-after source for financial television, magazines, and newspapers looking for insightful analysis. His expertise has been featured by CNBC, FOX Business and...