This involves planning for the smooth continuation and ongoing success of a business in the event that the leader or a key person leaves. Whether you’re planning for your future retirement and the handing over of your business to a family member, thinking in terms of selling your business within the next decade, or simply trying to ensure that the unplanned loss of key personnel doesn’t have a negative impact on profit, succession planning should be a priority before it becomes a necessity. The plan should include strategies for mentoring or training candidates.

The exit strategy

Businesses can be bought or sold. Business owners often refer to their plan of disposing of the business as an “exit plan”. Common exist plans include IPOs (public sales of stocks), MBOs (management buy-outs), and merger with other businesses.