Why a Continuation Plan Is Pivotal for the Future of Your Business

Planning

Do you have a continuation plan in place for your business in the event of your CEO’s untimely or unexpected departure?

MassMutual’s Ryan Hill, AIF, retirement plan specialist, answers questions about why it is crucial to have a strong plan in place now to ensure your company keeps running smoothly!  

Q: What is a continuation plan?

A: Continuation planning requires taking time to ensure your business will continue after your retirement, death, or disability. Some notable items to include: a mutually agreeable sale price, preservation of the business’ value, and an orderly transfer of the operation, management, and ownership of the company. Focusing on providing stability for your clients, employees, creditors, and investors will create a smoother transition for everyone involved. The key is to have a continuation plan in place before a crisis!

Q: Why is it essential to have a continuation plan in place?

A: Having a written continuation plan can keep a business going and help prevent conflicts among remaining owners or the previous owner’s family, legal action, delays in business growth, and loss of customers or business value. The lack of a plan could also cause the liquidation of a company, which may bring in less than the full market value.

Q: How do you begin setting up a plan?

A: It’s similar to having a will and estate plan for a family. The easiest way to begin is to have a conversation about the future desires of the owner(s). These conversations should include: the owner’s exit timeline, business valuation (with and without current owner present), income and estate tax impact, identifying key employees, and assessing if family or business partners involved want to continue the business.

Nextep’s retirement team is here to help you make long-term plans that best fit your personal and business goals! To learn more about starting a continuation plan, contact 401k@nextep.com.

Also on Nextep

March 1, 2024 is Employee Appreciation Day! Every year, businesses across the globe take a moment to pause and honor the backbone of their success: their employees. Employee Appreciation Day, usually celebrated on the first Friday of March, is a chance to express sincere gratitude and show these hardworking individuals how much they mean.  Appreciating […]
Read more
Remember that new independent contractor rule coming soon? It’s the one that makes it harder for businesses to call a worker a “contractor.” As a reminder, that big change kicks in March 11, 2024. Why should you care? More workers might become employees. This means benefits like minimum wage, health insurance eligibility, paid time off, […]
Read more
What Businesses Need to Know Last week, we discussed collaborating with employees who request religious accommodations during Ramadan. This week, we’ll look at some of the nuts and bolts of religious accommodations at work and the impact of last year’s Supreme Court case, Groff v. DeJoy. The Groff v. DeJoy decision, as we covered when […]
Read more
Ramadan, the holy month of fasting and reflection for Muslims, begins on Sunday, March 10, 2024, and end on Tuesday, April 9. As an employer, understanding your Muslim employees’ needs during this time fosters a supportive and inclusive workplace.  It’s important to consider that rejecting flexible requests without a valid reason could be seen as […]
Read more
Big Change for Gig Work and More The Department of Labor (DOL) has revised its rules for classifying workers as independent contractors, making it more difficult for businesses to do so.  Effective March 11, 2024, this change impacts workers across the US and could have significant implications for businesses of all sizes. New rules make […]
Read more
Essential Updates for Employers in the New Year Heads up, employers: there are several new workplace laws and regulations in 2024.  The new year is just around the corner, bringing a wave of changes for employers nationwide. These regulations aim to create a fair and supportive work environment that attracts and retains top talent. Federal […]
Read more
Ah, the holiday season—a time for joy, festivities, and the age-old puzzle of compensating your employees. Let’s demystify the rules of holiday pay for both our hourly (nonexempt) and salaried (exempt) workers. For the Hourly Heroes Picture your business decked out in holiday cheer, but your nonexempt employees are sipping cocoa at home. Under the […]
Read more
Keep Your Party Pants Professional As the year ends, and you’ve achieved feats at work that deserve a standing ovation, the holiday office party is your well-earned, much-awaited reward.  But beware! When the festive spirit meets the allure of a bottomless drink supply, things can take a wild turn, leaving you nursing a hangover, regret, […]
Read more
We’ve talked recently about the importance of sustainability in business. Let’s take it a step further and look at ESG, or Environmental, Social, and Governance.  The Impact of ESG on Companies Environmental (E) Companies that focus on their environmental impact are making a positive change. They reduce their carbon footprint, use clean energy, and find […]
Read more
Sustainable business isn’t just for hippies! As we discussed in our previous article, sustainability is increasingly important to today’s business. It is a crucial and relevant issue that affects everyone and every organization, regardless of industry or beliefs. Sustainability involves taking a long-term, holistic view of how we interact with the environment and our communities, […]
Read more
At Nextep, we aim to stay informed about CEO concerns in order to better help with problem-solving. We were surprised to learn that sustainability has become a top concern. The statistics bring CEO concerns to light: A Gartner survey found that CEO concern about sustainability has increased 292% from their 2021-22 survey. In a survey […]
Read more
It’s not the most savory of topics, but still merits discussion. All of your employees will need to use the bathroom during work. Here’s a potty primer, if you will. Disability and Bathrooms The Americans with Disabilities Act (ADA) has clear regulations on bathroom accessibility in the workplace. Much of the guidance revolves around making […]
Read more

Download Our App


Download the Nextep Mobile App in Apple iOS or Google Play