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Working with our clients.
| Do you need immediate help with an accounting or tax questions? Are you considering
making a financial gift and want to know the impact it may have on your estate? Just call
a professional at Carneiro, Chumney & Co. Over 80 years of service tells you that we are
client focused and responsive! We don’t just tell you that we offer excellent client service,
we do it every day.
If you want the level of service that the rest of our clients have received for the last 80
years - contact us.
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| What’s Next for Your Business?
Business succession planning involves planning for the smooth continuation and success
of your business which depends greatly on the availability of competent people. Be it a
profit or non-profit organization, one of the chief concerns is there may be no successor to
drive it once the leader or key person leaves – either by choice or by circumstances.
What is likely to happen to your organization when a key leader is eliminated without
succession planning in place? Here are some things to expect. First, there would be either
no able successor or where there is, the successor is often either unprepared to handle
the heavy responsibilities placed upon them or he/she simply does not have the ability to
manage the organization in the way it used to be. Whatever the case may turn out to be,
the situation can be dire. Profit may be lost. Business can become untenable to continue.
In the case of the unplanned death of an owner, the remaining co-owners and the heirs
may be embroiled in a relationship crisis that threatens to wreck the business.
In an unplanned situation, ineffective quick-fixed solutions are the only answers left. If no
able successor can be found, a temporary replacement is often the only choice left, and
the ultimate result may still be the downfall of your organization. It is difficult enough to
run an organization with experience and ability. Without the requisite qualities in the new
leader, the rot of your organization is almost likely to set in immediately; unless it is lucky
to have a replacement who happens to be suitable and motivated. If not, an unmotivated
successor is equally bad news for the set-up. Without the drive, the organization will stay
stagnant and more than likely, to slide.
Without succession planning, a business that has become successful can just as easily
fall. Your business grows because there is a leader with experience, drive and ability.
Without proper succession planning, the future success of your business is left to chance.
Under such a circumstance, if it succeeds at all, it is by default rather than planned. That
is not all. The passing of the baton from one generation to the next is often clouded by the
stakeholders’ differing views and agendas. Without proper planning, the clashes of views
and agendas can pull your business in several directions and this may wreck an otherwise
viable business.
With so much at stake, business succession planning has to be a priority and
should be part of every business planning.
There are two main options available to business succession planning, which are:
1. Retention Planning: Retention of your business within the family circle; and
2. Buy-sell Planning: Selling of your establishment to other business owners or key
employees or interested outsiders.
Contact Allen Robertson if you’d like to discuss how we can help you with succession planning.
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