What is a business succession plan?

A business succession plan is a written plan outlining how ownership and management of a business will transition from one owner to the next. This plan is used to ensure that the business is able to continue operating without interruption after the current owners retire, die, or otherwise need to leave the business. In Alaska, the Alaska Small Business Development Center (ASBDC) is a great resource for businesses to get support in creating the necessary planning in order to have a successful business succession plan. The ASBDC provides guidance and resources on the legal and financial aspects of starting a business and provides owners with the information to make informed decisions. The business succession plan should include several aspects, such as a transfer of ownership, management structure, and a timeline for execution. It should also include details about how the current owners will receive compensation and benefits, how the new owners will be selected, and arrangements for the transfer of assets. The succession plan should also provide mechanisms for controlling and managing the business during the transition period. Lastly, once the succession plan is written, it should be reviewed periodically to ensure that it remains up to date and reflects any changes that have taken place. By having a detailed succession plan, business owners can ensure that their business will be successful after their time at the helm.

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What is a business succession plan?

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