When a business owner is about to retire, everyone needs to know that the business will keep going on as usual. A succession trains lower-level employees to take over the higher-level positions as business owners or managers. A Wisconsin business attorney can help with this process.
Here are 5 tips to plan the succession of your business successfully:
1. Define the Tasks
Define clearly the duties of the positions that need to be filled. Many businesspeople plan successions and assume that the lower-level workers already know what to do. Your workers fail if they have to figure things out. Tell them what they should expect in their new positions.
2. Undergo Work Performance Evaluations
Have your employees undergo a series of work performance evaluations. Review the actions and decisions that they make when faced with different challenges. Rank each employee on a score sheet. The highest ranking workers should get first considerations for the senior level positions.
3. Consider New Hires
Outsourcing is an example of the fact that you don’t always find everything that you want within your own company. If you need to fill important positions, consider hiring new employees. A new employee may be more qualified than one who has worked for the company for decades.
4. Ask for Referrals
In business, some of the best decisions are made in a team. Ask your coworkers and employees for referrals. Ask for a group opinion on who should get promoted and which position is suitable.
5. Monitor Your Successors
Keep a close eye on your successors after they take charge. Continue to evaluate the company’s expenditures, profits and overall success rates. Monitor them closely for the first few months, and as they show signs of success, reduce your level of scrutiny gradually.
How a Wisconsin Business Attorney Helps
A business succession is a process that requires both old and new owners to file legal documents. Not having the right names on the documents could lead to an improper division of property. The new successor may not have legal ownership of the company car, for instance. The new owner takes on new problems if debts are not paid off either.
Menomonee Falls business attorneys understand the importance of filing the right succession documents and on time. Contact a business attorney to guide you through a succession.