Part of the job is devising a plan for the future of a business - here are reasons why

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Part of the job is devising a plan for the future of a business - here are reasons why

  • Business succession planning, crucial for the future of a business, involves creating a plan for when the owner exits.
  • Experts advise starting the planning process early, even before the business is fully established.
  • Succession plans should be tailored to the specific needs and goals of each individual business, ensuring a smooth transition and continued customer satisfaction.
  • Failing to plan can lead to uncertainty and potential negative consequences for the business, employees and customers.

A 70-year-old man walked into his attorney's office one day and proclaimed he needed to start planning for the future of his business.

In another case, a man who is 70 is now executing the business exit plan he initiated when he was 25, before he even created the business.

These examples are on each end of the extreme when it comes to succession planning, which was the topic of a program held in Berlin last week with more than 70 people attending.

A trio of experts in the field of estate planning as it relates to business shared their insights with the audience.

Business owner Ernie Hershberger, left, CPA Rachelle Lewandowski and attorney Garrett Roach answered questions about business succession planning during guests at a program in Berlin last week. Roach says the importance of succession planning stems from a lifetime of building a business. It should be a long-term process that is thought about daily.

Attorney Garrett Roach with Critchfield, Critchfield & Johnston Law Firm in Millersburg, CPA Rachelle Lewandowski with Rea & Associates in Millersburg and Ernie Hershberger, owner of Homestead Furniture & Dutch Design in Mount Hope, were on the panel.

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They fielded questions submitted at registration, with querries including what is business succession, why is it important, when should planning start, who should be involved and what are some of the consequences of failing plan ahead.

Never too late, or too early, to start succession planning

Roach told a story about how a client in his 70s visited his office saying he needed to start thinking about his future and what would happen to his business if he were to retire, die or become incapacitated.

"You are so right," Roach told him, noting it is never too late to start planning for the future.

Hershberger said he has a friend who began his succession planning before even developing his business plan. He is now executing an exit plan at the age of 70 that he wrote when he was 25.

Holmes County Economic Development Director Mark Leininger moderated a panel discussion about business succession planning in the conference room of Comfort Suites in Berlin.

"It is key to develop your plan early," he said. "I think most people start thinking about this too late. I'm still nine years away from the stage of next transition. I have a format I am following, but I do not know who that person (who will succeed him) is going to be. That is still a work in progress

Exit plan is crucial after a lifetime of building a business

Roach said the importance of succession planning stems from a lifetime of building a business. It should be a long-term process that is thought about daily.

"You owe it to your customers and your clients to have a succession plan for the future of your business," Roach said. "They trusted you for a lot of years, and when you go, you have to make sure that whoever follows you still delivers a good, quality product."

According to Holmes County Economic Development Director Mark Leininger, the objective of the event was to help small business owners better understand the process of succession planning − making a plan for what will happen with the business when they leave it.

"Given the outsized role small businesses play in our local economy (nearly $1 billion in annual payroll), and the number of businessowners who are approaching retirement age, we thought it was a timely topic," Leininger said.The event was co-sponsored by the Holmes County Economic Development Council and the Holmes County Chamber of Commerce & Tourism Bureau

Event: International Conference on Strategic Management and Business Strategy visit :business-strategy-conferences.scifat.com Event: International Conference on Strategic Management and Business Strategy visit :business-strategy-conferences.scifat.com Nomination link: business-strategy-conferences.scifat.com/award-nomination/?ecategory=Awards&rcategory=Awardee Registration link: business-strategy-conferences.scifat.com/award-registration contact:managementstrategy@scifat.com ----------------- visit : youtube: @bussinessstrategy250 Twitter: twitter.com/awards32874 blogger: bussinessanagement.blogspot.com

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