Are you confident in the protection of your company’s interests if something were to happen to you? If you don’t have a plan in place and either retire or suddenly become unable to manage your company, you leave the business exposed. Luckily, there are a number of things you can do to help protect your company. Today’s article discusses the two important steps you need to take to protect your company’s future.
Create a Formal Succession Plan
Creating a written succession plan requires designating an immediate successor in the case of your being unable to lead the company. A succession plan needs to be designed that would ensure the business would continue under normal operations without major interruption. Such a plan will help increase the overall stability of your company and avert disputes over leadership in your absence. In order to protect your legacy, you need to have the important discussions now before a crisis occurs.
Continuity plans are essential to help maintain business functions through staffing changes, vacations, retirement, and unexpected losses. Maintaining records of client meetings and conversations helps provide context for successors in the case that a transition of leadership or key staff becomes necessary. Hopefully, the need for these records will be limited, but part of being a responsible leader is planning for the worst case scenario.
Buy Insurance Coverage
Recruiting a successor can cost a business significant time and money. Insuring against the loss of key players can provide the financial support your business needs to stabilize. Life insurance provides businesses with the cash they need to keep operating during a very difficult time. Having the cash reserves that life or disability insurance on key employees (including yourself) provides will help the business continue on in your absence until an appropriate successor has been brought in.
Key players are legitimately important to the success of a company. A lucky few businesses are able to survive the loss of a key player, and the majority will in fact go out of business within three years of such a loss. This has negative impacts to all employees and their families. To avoid such drastic ramifications, key player insurance protects against the loss of primary owners or staff with high levels of proprietary knowledge. Expenses that could occur should such a loss happen includes transition plan expenses, buyout requirements, and replacement personnel.
While it is not pleasant to think about what would happen to your business should the worse happen to you, if you want to protect your company even in your absence, planning ahead is crucial. A succession plan and insurance coverage will help prepare you and your business for a wide variety of situations. Speaking clearly and openly with staff about what you would like to happen in such situations will also help to avoid confusion and prepare them for the future.
About BOS Staffing
With more than 100 years combined experience providing temporary, temp-to-hire and permanent staff. We serve the legal, medical, call center, accounting, IT, technical, distribution and light industrial industries, BOS Staffing is a serving the Athens, GA area.
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