Succession planning is a strategy for passing on leadership roles, usually the ownership of a company, to family members and/or other employee or group of employees. If you own a business you should develop a plan to ensure your business will continue to run in your absence. This is also “replacement planning,” and it will ensures that businesses continue to run smoothly after a company’s most important people move on to new opportunities, retire, or pass away.
If you fail to prepare, your business may come to a halt because you have failed to leave anyone in charge to continue operations while you are unavailable. Your family members will be forced to file a petition in probate court to obtain orders to continue the operation of your business. This could take weeks or even months. Your business will absolutely suffer financially while waiting for orders from the probate court.