Over the years, you have worked relentlessly to build your business into a thriving enterprise in Louisiana. The thought of seeing it all become obsolete because you pass away can be both disheartening and alarming. Preventing this drastic outcome from becoming a reality is due in large part to your ability to create a strong and concise succession plan for the operation of your business after you are deceased.
One option that you have is to look through the employees in your company and identify those who are capable of presumably taking on a leadership role if something were to happen to you or other members of management. You can incorporate training and employee education to strategize how to get those employees from Point A to Point B. According to Fidelity Investments, a buy-sell agreement is incredibly valuable in these types of situations where you have co-owners that work equally with you to operate the organization. You can arrange an agreement that dictates how the process of succession will play out, and to whom when you become incapacitated.
Experts recommend that you also invest in a life insurance policy that can provide additional protection and help to make liquidity more functional if the need arises. Your succession plan should be regularly modified to reflect changes within your organization to verify that it stays up-to-date and applicable for the most effective output when its use is required. Others within your company who will be personally affected by the succession plan should be informed of the changes that will take place.
The information in this article is intended for educational purposes only and should not be taken as legal advice.