Succession planning is an essential component to business continuity, a smooth transition, and effective estate and tax planning.
Succession planning is an essential component to business continuity, a smooth transition, and effective . However, when there are several individuals under consideration for the job, making a decision can be challenging when there is a great deal at stake. Similar to making important decisions about investments, home ownership and other large financial events, asking simple questions can help business owners assess their options and make more informed decisions.
For instance, owners can begin by questioning which of their employees has the best disposition, training, and inherent skill for both managing a company and taking it to the next level. Many small businesses – may automatically consider a relative or a person who has been a leader’s right-hand man as next in line, a recent Forbes article noted. However, this does not automatically mean that the person is the best for the job, and acting on emotion rather than business mentality can lead to leadership problems in the future. Instead, owners may benefit and protect their life’s work by choosing a person who has the best skill set to handle the challenges of ownership.
Choosing a great leader does not always ensure the continuity and success of a company. It’s also critical to think further ahead about existing and future talent pools, and how well these individuals work with the new leader. Promoting a family member or loyal worker to a higher position may leave gaps in existing roles, which should be filled prior to an owner’s departure. This may help ensure a smoother transition.
Lastly, new owners and employees should be well-versed on the financials of the company, particularly as it relates to tax and estate planning. Ensuring new leaders and managers have access to pertinent documents, know which assets they are inheriting, and how these assets will be affected by tax law can help avoid any unwelcome surprises.
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
