Constructing a Succession Plan

Transcription

1 Constructing a Succession Plan Presented by Alan Richardson MBA, CExP, Certified EOS Implementer arichardson@tomorrowiscoming.com Tomorrowiscoming.com

2 Thank You Pam, Farm Journal and DuPont Pioneer Fellow Presenters Collaborative Advisors Elizabeth Wieneke John Gorman Farm Journal Legacy Project Advisory Team Davon Cook, Dick Wittman for slide content You Working ON your business today (not IN )

3 Today 3 types of people here today Type 1: Defiant, don t want to be here Type 2: Indifferent, came along for ride Type 3: Purposeful, want to be here My objectives for you today Type 1: Have some fun, know how to support Type 2: Have fun, learn, engage Type 3: Have fun, learn, checklist and next steps

4 About You Farmers # staff in the business? Type of operations Row crop Livestock Adisors/Partners Attorney, Banker, CPA/Tax, CFP, Insurance, other?

5 About Me Grew up on farm in Southeast Iowa Live near Adel, IA with his wife, Lori and two sons Certified Exit Planner (CExP) Certified Implementer of EOS (Entrepreneurial Operating System) 25 years working with/for Agricultural companies Past 7 years working with entrepreneurial business owners and farm families developing and implementing Business Continuity and Succession Planning (BCSP) Work throughout U.S.

6 Agenda What is succession planning? Healthy businesses have healthy processes all of which enable successful succession Critical conversations with key stakeholders Professionalizing the building blocks of your business 101: Provide you outline and common language more work ahead!

7 Reason s Business Owners Get Stuck with BCSP Fear Of the unknown Current pain is less scary than change Of conflict Not a priority Doing today is easier than thinking about tomorrow Others can/will deal with it after I m gone Limited Resources Time, $, People/involvement

8 Covey 7 Habits of Highly Effective People* Interdependent 6) Synergize 5) Seek to understand, then to be understood 4) Think win/win/win Independent 3) Put first things first 2) Begin with the end in mind 1) Be proactive Dependent * Steven Covey: 7 Habits of Highly Effective People (#7) Sharpen the Saw)

9 5 Dysfunctions of a Team* Frustration Energy Time * Patrick Lencioni: 5 Dysfunctions of a Team

10 3 Ways We Listen 1. Long enough to know what we are going to say 2. Long enough to know what we disagree with 3. To understand the other person learn (It works better if you do #3.)

11 Law of (proven processes) Crop Harvest Till Plant Tend Harvest Livestock Production Breed Birth Raise Feed, tend, water, etc. Harvest Business Continuity and Succession Planning (BCSP)

12 Six Components of a Comprehensive Business Continuity & Succession Plan (BCSP) 1) Business Plan and Management System 2) Business Continuity Plan 3) Business Succession Plan a) Management b) Ownership 4) Personal Financial Plan 5) Estate Plan 6) Annual Business Review Need collaborative advisor team Business/family advisor Attorney CPA/Tax advisor Insurance advisor Certified Financial Planner

13 Six Components of a Comprehensive BCSP 1. Business Plan: Growth and sustainability plan, operating system, financial resources, qualified and passionate leaders and managers. 2. Continuity Plan: What will happen in the event of an untimely death, disability, divorce, etc. of one of the business owners? Buy- Sell agreement, insurance, etc. 3. Succession Plan: What you want to happen, both Management and Ownership Succession 4. Personal Financial Plan: Financial plan for exiting owner(s) to ensure they will be financially secure for the rest of their lives before they retire/sell their business interest. 5. Estate Plan:(What will happen to a person s stuff upon their death? Plan to minimize transfer taxes and avoid selling business to pay tax liability. 6. Annual Business Review: Annually review 1-5 above to ensure the BCSP stays current as time marches on and events happen.

14 Six Components of a Comprehensive Business Continuity & Succession Plan (BCSP) 1) Business Plan and Management System 2) Business Continuity Plan 3) Business Succession Plan a) Management b) Ownership 4) Personal Financial Plan 5) Estate Plan 6) Annual Business Review Need collaborative advisor team Business/family advisor Attorney CPA/Tax advisor Insurance advisor Certified Financial Planner

15 Common BCSP Problems No business plan (goals, objectives, plan) Business is out of control (rapid growth) Business is not a business, it is an asset Business conflict (different goals, philosophy) Poor business performance or little value Current Owner(s) Don t want to change Are not going to die Don t know what to do Dictator No proven process Poor communication Spouses Multi-generations In-laws/Out-laws Misguiding trusted advisors

16 What are all these plans? Estate Plan Succession Plan

17 How They Compare Estate Plan What you have Assets Easy to identify (balance sheet) Solved by an expert Responds to compliance/gov t regulations Solutions implemented quickly Involves financial ownership Determined by senior generation Activities occur at set times Major transition often occurs at death Opportunity for conflict limited time In-laws generally passive recipients Strategy tends to be clear Succession Plan What you do Skills, Activities, Decisions Hard to clearly describe lots of hats Solved by you, assisted by advisors Involves business environment, strategy Solutions evolve over time Requires psychological ownership Collaborative between generations Takes place daily in the business Major transition occurs during lifetime Opportunity for conflict every day In-laws often active voices Strategy can be very messy

18 3 Types of Business Owners*/Leaders 1. Technicians do the work (Independent) 2. Managers manage technicians (Interdependent) 3. Entrepreneurs build systems and processes to multiply and replicate * The E-Myth Revisited, Michael Gerber

19 Three Four Stages of Family Business from John Ward s Perpetuating the Family Business Stage I Owner-Managed Stage II Sibling Partnership Stage III Cousin Collaboration Stage IV Family Owned & Non-Family Managed Facts 30 years ago 5-10% run by siblings Now: 50% owned/run by brother/sister groups ½ family businesses fail to go to 2 nd generation

20 Family Business Lifecycle Survival Stable Start-up, Struggle for financial stability, Financed by owner s compensation (or lack thereof). Profitable for a number of years, growing, still owned by individual or couple. Net worth growth. Some offspring returning to business. Key employees. Professional Ownership spread to multi-gen siblings/cousins. Business growth, introduction of nonfamily management, establish policies, formalize roles. Institutional Mix of family/nonfamily shareholders. Family may not be involved in management, board of directors is governing body. Dividend income.

21 Distinctive Hats Worn Family Owner Staff Must be very purposeful and distinctive in what hat you are wearing for every situation and discussion.

22 Complete this sentence: If I go back to the farm/ranch, my expectations are what potential successors are thinking what owners are thinking Managing Assumptions ACTION REFLECTION PLANNING Corporate (Family and Closely Held) Decision Making Model MUTUAL EDUCATION I TO WE KNOWLEDGE Assumptions Confirmation

23 If You Remember Nothing Else: In the absence of a story, people make one up! Is it more important to be right, or in a relationship? Decision is never made until it s put on paper! the shortest pencil is longer than the longest memory! Mark Patterson, The Circle Maker Progress over Perfection

24 Table Exercise: Succession Planning Self-Assessment Page 27 Legacy Project Workbook Answer questions with 1-5 score Don t worry about totaling your score not all questions are a score able with a number Individual vs. team perception Add: The right to work in the business should be earned it s not a birthright.

25 Sharing History with Successors Do you have this written? Key events and timelines that shaped your business journey Ownership evolution Key players that have come and gone skeletons Value in succession planning process Defining your legacy Briefing document for outsiders

26 Future History Exercise History = Past Significant events in life and the business By year Today = Present Assessment where you are today Future History = Tomorrow & beyond What you want to happen By year Your role

27 Future History Exercise Benefits Allows younger generations to understand and appreciate past efforts, risks and sacrifices Allows current members to assess and discuss where they are today Allows multiple generations to discuss what they would like to happen in the future in a relative few years Gets everyone on the same page in a concise and consistent manner

28 Six Components of Comprehensive Business Continuity & Succession Plan (BCSP) Business Plan and Management System 2) Business Continuity Plan 3) Business Succession Plan a) Management b) Ownership 4) Personal Financial Plan 5) Estate Plan 6) Annual Business Review Need collaborative advisor team Business/family advisor Attorney CPA/Tax advisor Insurance advisor Certified Financial Planner

29 Business Plan and Management System Need a Proven Leadership and Management System Entrepreneurial Operating System* Vision, Traction, Healthy Team Six key components Tools Vision/Traction Organizer Accountability Chart roles and accountability Clear Priorities Meeting Pulse Scorecard what you are measuring Other systems/processes * Traction. Gino Wickman

30 Business Plan and Management System Six Components of Every Business Need to be strong in every component!

31 Business Plan and Management System V/TO (One page document) Core Values what you stand for Core Focus why you exist and what you do 10-Year Target Marketing Strategy how you plan to hit your target 3-Year Picture 1-Year Plan Quarterly Action Items Issues

32 Business Plan and Management System Departmental Plans & Processes Marketing Operational Crop Plan Livestock Plan Manpower Plan Equipment Plan Accounting/Finance Technology Human Resources

33 Simplify Planning and Understand Inter-Relationships Strategic or long range planning Operational or annual planning Production Plan Marketing Plan Capital purchases and sales Debt financing arrangements

34 Six Components of Comprehensive Business Continuity & Succession Plan (BCSP) 1) Business Plan and Management System Business Continuity Plan 3) Business Succession Plan a) Management b) Ownership 4) Personal Financial Plan 5) Estate Plan 6) Annual Business Review Need collaborative advisor team Business/family advisor Attorney CPA/Tax advisor Insurance advisor Certified Financial Planner

35 Business Continuity Plan What will happen in the event of something bad happens to one of the business owners Death, long-term disability, divorce, etc Buy-sell agreement (written & signed) Insurance

36 Six Components of Comprehensive Business Continuity & Succession Plan (BCSP) 1) Business Plan and Management System 2) Business Continuity Plan Business Succession Plan Management Ownership 4) Personal Financial Plan 5) Estate Plan 6) Annual Business Review Need collaborative advisor team Business/family advisor Attorney CPA/Tax advisor Insurance advisor Certified Financial Planner

37 Succession Plan Management Who will take over roles of exiting members Ensure adequate leadership and expertise in key areas: Ownership Sales/Marketing Operations Accounting Finance Others if operation is larger: Human Resources, Information Technology, etc. 3 Types of Owners Exiting Remaining Entering

38 Questions Owners Must Answer Exiting Owners What Exit means to you? When to exit? Who will take over business? Remaining Owners Backfill Exiting Owner roles? Do Entering Owners have same core values? Do Entering Owners bring new & needed skill sets? Entering Owners Do we have the same core values? Do we bring a unique and needed skill sets? Are we willing to commit to this business?

39 Basic Succession Planning Questions What is our mission, vision and value set? Needs of the business for capital (now & future)? Needs of the business for management and staff (now and future)? Capacity to support current and future families desiring ranch career (financial trends, margins, revenue/fte)?

40 What are you passing on? Ownership Working Career Opportunity Values And a key question: Do interested parties want to continue the business? Requires engaging stakeholders to decide if there is adequate interest in owning and/or managing.

41 Succession plan is psychological ownership of

42 Transitioning Wealth (Ownership & Financial Control) Optimal entity structures to facilitate goals? Buyout agreements, gifting, wills, estate plans, etc.? Risk management (insurance) tools needed to insure liquidity and facilitate transfers? Warning! Answer these last not first! form follows function

43 Healthy businesses have healthy processes* Agreement on vision/direction, mission, and values Business planning processes Understanding of financial information, performance and drivers Expectations of one another and of business performance clearly articulated Written policies and procedures as needed Functioning communication: input, feedback, discussion, and healthy conflict Accepted and respected decision making processes and governance Processes to attract, develop and retain good people Job descriptions Evaluation & feedback Development plans Family employment policy * Davon Cook

44 Farm Journal Project Workbook Chapters 1. Getting Started a) Comprehensive succession plans build family & future b) Family meeting 2. You Matter 5 Keys to good, open communication 3. Set Common Goals 4. Is it Time? Steps toward transition 5. The Right Foundation The Business Plan 6. Prepare to Lead Develop the next generation 7. A key to Continuity craft your buy-sell agreement 8. Ready for Retirement? Prepare for what s next 9. Protect the Farm Estate plan essentials 10. Draft your Team Building a strong network 11. The Miracle of Commitment Dedicated to Legacy

45 Healthy businesses have healthy processes Agreement on vision/direction, mission, and values

46 Mission and Core Value Statements Only 33% of ag businesses define this! Consequences: Team can t agree/focus on: Mission business product or service, primary customer & key objective Vision end point if you succeed Values & Philosophy ground rules Put in writing and post visibly on farm

47 Our Vision Our Mission Will Be Accomplished When Complete careers with financial security and value our family and business associations The business grows, adapts, and remains financially viable Capable successors are carrying on our heritage What s your exit plan? Not everybody s goal

48 Common Conflicts Core Values Always be leading edge If ain t broke, don t fix it Maximize profits (live for today) Maximize long-term economic and environmental sustainability (live for tomorrow) God & family first Business first; God and family can wait Professionalism always expected Professionalism OK when I m in the mood Everybody should be equal Pay and position should be based on skills and performance

49 Consequences of Bad Chemistry & Lack of Consensus Vision & Core Values Manage for today vs. Long run Make rules on the go End Result: At each other s throats! Chase successors away Sever business & family relationships Run business aground

50 Healthy businesses have healthy processes Agreement on vision/direction, mission, and values Expectations of one another and of business performance clearly articulated

51 Expectations of Each Other in Each Role

52 In The Business Roles: Accountability Chart Integrator Profit & Loss Lead & manage staff Neighbor & community relations Enterprise composition and focus Sales/Marketing Market grain/ livestock Secure acres to rent/lease Brand image Operations Purchase inputs & supplies Equipment and labor management Land, livestock and crop management Finance Cash flow Budgeting AP/AR Risk management Bank relations

53 Healthy businesses have healthy processes Agreement on vision/direction, mission, and values Expectations of one another and of business performance clearly articulated Accepted and respected decision making processes and governance

54 A Balance Point in Governing

55 Board of Directors Policy, Management Direction, Owner ROE & Financial Control Does structure reflect authority & accountability flows? Board Management Responsibility Center Mgrs Advisory Board* The Missing Pieces Pres/Gen Mgr Finance, Mktg Office Staff Cattle & Hunting Manager Crops Production Manager Specialty Enterprises Manager Equipment Support Manager *Advisory Board Insurance Agent Investment Advisor Loan Officer Marketing Advisor Crop Scout Accountant Attorney Cattle Breeding Advisor Forester Wildlife Expert Peer Board- Clearwater Direct Seeders Seasonal Pool: Tom, Dick, Suzie Harry, Sam & Glenda Asst Mgr Bldg Improvements and Rentals

56 Role of Board of Directors Setting Policies Determining strategic direction Hiring, directing, evaluation & compensating management Maintaining financial control reviewing performance exercising due diligence

57 7 Alternative Board Structures

58 Healthy businesses have healthy processes Agreement on vision/direction, mission, and values Expectations of one another and of business performance clearly articulated Accepted and respected decision making processes and governance Processes to attract, develop and retain good people Job descriptions Evaluation & feedback Development plans Family employment policy

59 Table Exercise: Organization Structure & Players Turn to Page 37 to draw picture Relates to Question #3 on page 35 Draw flowchart of members active in operation List title or area of responsibility for each Include board members/advisors, if applicable Extra Credit: Draw chart 5-10 years from now

60 Who should be on bus, and where do they sit? Good to Great by Jim Collins How are you organized today? What will organization look after transition? Criteria be for filling vacant slots? Skills, abilities, passion vs. I m family; I m owed a job How do you pass the baton? Duty statements review, timetables for transition, apprenticeships, OJ training How does old guard get out of the way? Board chairman vs. CEO ( boss )

61 Organization Questions Are roles divided? Is reporting and accountability structure defined? Now After transition Do key members have written job descriptions? 40% have this in place

62 Is career path apparent? CEO Board Chairman Assistant Manager Laborer

63 Why Write Job Descriptions? Pinpoints accountability for team members New hires focus on skills and qualifications I m family I m owed a spot here. vs. Do we have a vacancy to fill? Basis for performance appraisal Retirement transition tool Helps exiting principal focus on key decision areas Checklist for training and delegation strategy 56 DUTIES listed in Guidebook

64 Job Description Chairman of Board Policy review and refinement Investment analysis Strategic planning Hiring, coaching, grooming successors Performance review and feedback Assisting and advising successors in day-today operations without telling them what to do

65 POSITION: President/General Manager Administrative Responsibilities Coordinate operational & strategic planning Organize work force Staff (recruit, hire, train) and assign responsibilities (job descriptions) Coordinate workflow Administer communication, evaluation and control systems Execute contracts Provide information and policy input to board of directors Farm Management role usually combines with technical role.

66 Are Employees and Key Principals Evaluated? Only 20% do evaluations Develop innovative system that fits your business Set performance standards tied to job description Use disciplined process on regular basis Anybody exempt? (boss, family?) Balance praise & criticism

67 Development Plans Sounds scary Simply defining how you are going to invest in building skills of an employee and/or successor Specifically what types of education and/or experience Annual plan for 3-5 years

68 Challenge: Mentoring vs Micro-managing Making the transition from Boss/CEO to Board Chairman Graduating From Parent To supervisor, manager, mentor, delegator, enabler, groomer Tools: tone of voice, words, body language

69 Selecting the Successor Does process differ if DAD: is involved in the picture? not around to influence the process? Does it make a difference: who is older? who has more tenure? whether candidate is male or female? who has the most ownership?

70 Avoid Bossing Tendency Define Attributes of Ideal Manager Rain break weaning calves Facilitator not boss Empowers people doesn t micro-manage workload Focuses on people, resources, information, technology Promotes teamwork, positive thinking and professionalism Willing to be accountable to the board of directors

71 Family Employment Policy Components to keep professionalism in the family business Vacancy requirement & skills required before hiring Economic capacity analysis to support hire Prior experience/training required; apprenticeships Supervision and reporting relationships/nepotism rules Consultation of stakeholders required before hire Merit vs. paternalism as criteria for hiring and advancement Policies on pre-nuptials Discriminatory treatment - family vs. non-family stakeholders Correlating compensation/bonuses with responsibility and performance Policy before the need

72 Danger Zone: Abusing Family Preference Nepotism has bad connotation for a reason! Preferential compensation: pay mine more because right name gives special rights (12 yr old at potato dump year; spouse driving harvest) Unemployed kid needs job. Let s find a place for him. Relevance to Transition Planning Assess commitment to running it like a business All in or all out rules must apply to ALL Solution: Address in Vision/Value Statements and Family Employment Policy

73 Healthy businesses have healthy processes Agreement on vision/direction, mission, and values Expectations of one another and of business performance clearly articulated Written policies and procedures as needed Accepted and respected decision making processes and governance Processes to attract, develop and retain good people Job descriptions Evaluation & feedback Development plans Family employment policy

74 Policies & Practices Do policies and SOPs attract & retain successors? or Chase them away?

75 Tools You Need WHAT I do Job description Policies & expectations Standard operating procedures What s EXPECTED of me and what rules I follow HOW I do it Feedback and evaluation Am I doing what I m supposed to? Am I doing it right? What can I do better? What do I want to learn/grow? COMPENSATION DEVELOPMENT ADVANCEMENT

76 Key Elements: Management Control System Comprehensive Record Systems Regular Performance Reviews Individual & Farm Business Ongoing Training & Professional Development Use of Outside Advisers Good audit and internal control systems

77 Are Policies Written Down? Common Land Mines Housing Company vehicles Room and board Expense accounts Setting compensation Withdrawals of capital Insider/inter-entity transactions Family Employment Policy Medical benefits Retirement plans/pensions Business benefit continuation Workdays and holidays Vacations, sick, business leave Buyout Understandings Outside activities 36% do! Ask each member of team to write down understandings then compare notes!

78 Housing, Utilities and Meals Housing provided by business or individual? Who pays for: maintenance, insurance, electricity and phone service? Meals on work premises

79 Salaries, Wages & Bonuses Officers / Partners Monthly draws Annual salaries, bonuses Full & Part-time help Who determines pay scale? What is the pay cycle? When is a bonus appropriate?

80 Common Sins - Compensation bosses kids get preferential treatment using labor as source of operating credit confusing compensation with estate planning no differentiation in pay scale inconsistent allocation of earnings to Labor/Mgmt vs. Owners

81 Characterized by: Caring & Support Competence/Performance Tied to Objective Standards Rewarded by: Love & Gifts Wise & Prudent Control of Equity Salaries, Wages & Benefits Dividends & ROE Source: Henry Landes, Delaware Valley Family Business Center, and Linda Smith, Top Producer, Feb 2005

82 Healthy businesses have healthy processes Agreement on vision/direction, mission, and values Business planning processes Expectations of one another and of business performance clearly articulated Written policies and procedures as needed Accepted and respected decision making processes and governance Processes to attract, develop and retain good people Job descriptions Evaluation & feedback Development plans Family employment policy

83 Planning References Legacy Workbook See pages Building Business Plans Need to sort out PLANNING as a part of the Business Management Process from term Business Plans

84 Why Farmers Don t Have Time To FARM!!! Production Planning Marketing Planning 73% Financial Planning Contingency Planning Strategic Planning -19% Manpower Planning Succession Planning Retirement Planning Family Planning

85 Simplify Planning and Understand Inter-Relationships Operational or annual planning Production Plan Marketing Plan Capital purchases and sales Debt financing arrangements Strategic or long range planning

86 Are these Strategic Issues Defined and Assessed Periodically? Growth Business structuring Estate & retirement planning Transfer of ownership/management Capital improvements/replacements New enterprises or enterprise shifts Manpower Planning / Personnel Development Management System Refinements Strategic Alliances & Joint Ventures Environmental Stewardship Tillage strategies Conventional, No till

87 Consequences Lack of Professional Planning Approach Unexpected outcomes Outdated strategies can t compete or exploit opportunities Don t optimize decisions purchase vs. rent vs. hire/share Anxiety & Stress destroy business teamwork & extended family ESPECIALLY TRUE IN SUCCESSION!

88 Healthy businesses have healthy processes Agreement on vision/direction, mission, and values Business planning processes Understanding of financial information, performance and drivers Expectations of one another and of business performance clearly articulated Written policies and procedures as needed Accepted and respected decision making processes and governance Processes to attract, develop and retain good people Job descriptions Evaluation & feedback Development plans Family employment policy

89 What gauges do we monitor? Seeding Rate Temperature Oil Pressure Acres/Hour Gallons/Acre Working Capital Debt/Asset Ratios ROE & ROA Accrual Net Income Cap Debt Rep Capacity Unit Cost of Production

90 Sharing Financials with Successors Have you done this? If yes, how did it go? If no, what are your fears? Successful attempts Ag lender, facilitator, family business advisor, acct.

91 Capital Contributions, Withdrawals 22% have policy in place. Who is welcome to invest in farm/ranch? Should everyone be equal? Minimum capital to leave invested? Can I ever get my money out? Revenue sharing tied to ownership ratios? Compensation for excess balances? Whose monitoring capital balance compliance with legal agreements?

92 Healthy businesses have healthy processes Agreement on vision/direction, mission, and values Business planning processes Understanding of financial information, performance and drivers Expectations of one another and of business performance clearly articulated Written policies and procedures as needed Functioning communication: input, feedback, discussion, and healthy conflict Accepted and respected decision making processes and governance Processes to attract, develop and retain good people Job descriptions Evaluation & feedback Development plans Family employment policy

93 Communications Systems Do you: Agree on rules for communicating professionally? Invest in understanding personality styles? Poll Group Share records openly? 40% Hold Regular Meetings Staff, Mgmt, Owners, Family? 42% Document key understandings? 31%

94 Meeting culture in your business? Staff meetings Management meetings Owner board meetings Advisory board meetings Family meetings Family council meetings

95 Communication Plan for Each Circle

96 Communication challenges - Family Farm Businesses Don t think business rules apply Family status trumps business roles Expect unprofessional to be tolerated Don t consider impact of personality style differences

97 What is Healthy Conflict? According to the book The Five Dysfunctions of a Team : discussion on differences of opinion in productive, ideological terms, not in destructive interpersonal terms. Purpose is to produce the best possible solution, even if that involves heated debate. You have to be able to discuss, debate, and disagree in a professional, productive manner. Sweeping it under the rug doesn t work!

98 Healthy businesses have healthy processes Agreement on vision/direction, mission, and values Business planning processes Understanding of financial information, performance and drivers Expectations of one another and of business performance clearly articulated Written policies and procedures as needed Functioning communication: input, feedback, discussion, and healthy conflict Accepted and respected decision making processes and governance Processes to attract, develop and retain good people Job descriptions Evaluation & feedback Development plans Family employment policy

99 Remember! In the absence of a story, people make one up! Is it more important to be right, or in a relationship? Decision is never made until it s put on paper! the shortest pencil is longer than the longest memory! Mark Patterson, The Circle Maker Progress over Perfection

100 Six Components of Comprehensive Business Continuity & Succession Plan (BCSP) Business Plan and Management System Business Continuity Plan Succession Plan a) Management b) Ownership 4) Personal Financial Plan 5) Estate Plan 6) Annual Business Review Need collaborative advisor team Business/family advisor Attorney CPA/Tax advisor Insurance advisor Certified Financial Planner

101 Where are we in agenda? What we just did: Took inventory of crucial conversations, issues, and options to consider about business we hope to pass on Next up: Tax and Estate Planning issues discussion Legal issues discussion Execution and Implementation Actionable Steps Wrap up Q & A

102 Constructing a Succession Plan Presented by Alan Richardson MBA, CExP, Certified EOS Implementer arichardson@tomorrowiscoming.com Tomorrowiscoming.com