If you are part of a family business, and don’t have anyone related to pass it onto, you might consider a business succession plan as an option. Business secession is the process of transferring the company over to a new group of owners and/or operators. It could be anyone, from a competitor, to a family friend who’d like to take over the business. Regardless, it means turning over the reins to another person or party. So, it’s best to have a fundamental understanding of the process itself and its net effects. Business Succession Advantages Perhaps the biggest benefit of succession planning is knowing who will continue the business, particularly if you’re concerned about maintaining its good reputation. Additionally, it also motivates employees to do their best, because those with key roles who will run the company in the future will most definitely take their responsibilities seriously. If you were a business owner who was considering putting your company on the market but decided not to sell (or at least not anytime soon), what steps should be you taking now? The goals are to ensure preservation of the current business, as well as provide for an orderly and stable future transition when the proper time to sell arrives. —Kiplinger Yet another advantage of business secession is having peace of mind as to what happens to the company after you retire, or in the event you become disabled or die. (This is not only true for you as the current owner, but also, for your customers.) Plus, it helps to put in place processes that are known quantities, and therefore sets the successors up for a successful future. Business Succession Disadvantages Of course, there are drawbacks to everything, including business succession planning and eventual execution. Here are the three most common downsides of business succession you should know about: Turnover. Not everyone inside the business will receive a key role in the future. That can damage company morale once the plan is revealed to the company at-large. Moreover, it could cause good people to leave for other opportunities. No guarantees. Even if every single aspect is outlined and detailed, this does not guarantee the business will continue to be successful. After all, turning over the management means relinquishing leadership, which opens the possibility of failure. At the very least, a risk the business will suffer instead of flourish. Inappropriate strategy. Perhaps the most disconcerting thing about succession planning is the very real possibility of selecting the wrong people to run the company. Sure, the personnel chosen might well be top-notch producers and good with mentoring others, but might not be up to the challenge of actually running an established company. What else would you add to the pros and cons of business succession planning? Please take a moment to share your thoughts and experiences so others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

With the roll-backs of local, state, and federal COVID-19 restrictions, businesses are attempting to return to a state of normalcy. But, reinstating pre-pandemic conditions isn’t as simple as they ought to be, and too many entrepreneurs are experiencing such a cruel reality. So, some are experimenting with a hybrid solution: a combination of work-from-home or WFH and on-site business operation. Sure, it certainly sounds like a logical solution. But, every solution breeds new problems. Meaning, there are distinct disadvantages to adopting a WFH and on-site business model. Biggest Hybrid Workplace Advantages Obviously, corporations around the world wouldn’t put a hybrid model in-place unless it had substantial benefits. And, there are some compelling reasons, like the potential of increased productivity via a customizable schedule. After all, happy employees are more productive and that’s certainly good for the bottom line. Then, there’s the morale boost which comes from being able to choose from WFH and on-site. Employees cherish the freedom and that too, helps to boost both productivity and morale. What many companies are converging on is a mixture of remote working and traditional office working, known as the hybrid workplace. A hybrid workplace exists when a business allows their employees to work either remotely or from the office. In a typical hybrid workplace, employees have the choice of working in a central office, working from home, or splitting their time between the two. —WeWork Ideas Blog Additionally, it can help to reduce operating costs, which decrease with the lessened need of supporting individuals constantly on-site. Moreover, it allows employees to avoid toxic situations. For instance, two or more employees who don’t get along very well in-person can find relief by not having to be in close proximity. 4 Issues with a WFH and On-Site Hybrid Business Operation While a hybrid operation might sound like a perfect answer, that just isn’t the case. Unfortunately, there are big potential problems with adopting a hybrid model, as the following issues might present: Managing a hybrid team is very difficult. Anyone with experience in managing a team is familiar with the vast time and effort that goes into making it work. Now, add-in a bunch of other variables that weren’t present before and it’s easy to imagine just how more difficult or nightmarish managing people in totally different physical locations is in reality. Some WFH employees will take advantage. Put this problem in the all-too-obvious column: some employees will exploit the new policies to their own personal advantage, even if it results in harming others and/or the company. While it’s not something you might relish thinking about, it is most definitely a possibility or perhaps, even a probability. A hybrid scenario can easily foster resentment. Another potential problem is along the same lines as the one above — that one or more employees will gain a sense of others’ nefarious behaviors regarding the hybrid operation. That could very well cause resentment to rear its ugly head. Not everyone will contribute the same amount. Expounding on the last two possible issues, is the real possibility one or more employees will shuffle responsibilities off their own shoulders and onto their coworkers through a form of sleight of hand. What other suggestions do you have to deal with potential work-from-home issues? Please take a few minutes to share your thoughts and experiences. Perhaps others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.