When a contractor has an effective succession plan in place, they don’t have to worry about what will happen to their business in the event that they have to step away at a moment’s notice. Many contractors have had to take the lead when the former leader of their company was forced to hand over the keys as a result of age, sickness, an accident, or something else entirely.
When the worst-case scenario becomes a reality, there’s little time to plot the best course of action, and sometimes the immediate successor is simply not equipped with the right tools for the job. It is in moments like this where many employers wish they had consulted a Jacksonville construction lawyer about drafting a succession plan. The peace of mind offered by a professionally prepared succession plan is highly valuable. After all, nobody wants to be pestered by the fear of an uncertain future, whether for yourself, your loved ones, or your business.
Can Your Business Function Without You?
As a contractor, you’re arguably the central cog in a vast network of gears that must turn in unison to keep projects chugging forward. As you continue to grow your business, you need to do so in a way that allows you to step away without affecting the functionality of this “machine.” In other words, you need to make the right moves and foster accountability to decrease liability. You need a support system. If you can’t step away for fear of your business grinding to a halt, you’re not really an owner — you’re a manager.
Planning for Retirement
If you’ve started thinking about retirement, you should already have a succession plan in place. Realistically, you’ll want to consult a Jacksonville construction lawyer five to seven years before you plan to retire so that you have ample time to train individuals who you believe can take over in your absence. Simply identifying which employees have leadership potential can take years, and if family members are in the race, you’ll want to take the time to figure out if a dedicated employee is better-suited than a blood relative to lead your business into the future.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.