MCC Construction Zone Succession Planning is Key to Sustaining Your Business Martin C. McCarthy, CPA, CCIFP
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uccession planning is the key to sustaining your business into the future. Contractors need to address who will take over the business when they retire or must leave the company due to circumstances that are beyond their control.
Succession planning is a process and strategy for replacement planning or passing on leadership roles. It is used to identify and develop new, potential leaders who can move into leadership roles when they become vacant. Having a succession plan in place will ensure that the owner’s wishes are carried out and prevent a power struggle within the organization. (Wikipedia)
Identifying the Next Leader A succession plan should clearly identify the capabilities, roles, and talent needed to lead the company. It is important to match any potential candidates’ temperament and skill set to the job. Money and resources will be invested in grooming the successor. Making sure the right person is selected for the job is critical. Family-owned businesses may want to transition leadership to the next generation. Unfortunately, a family member(s) might not possess the right skills to take over the company or more importantly
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