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Succession Plan for Business: Why Is It Important?

Succession Plan

Every entrepreneur wishes to succeed in a business and they work hard after investing their capital. However, starting a business and thriving in it isis one of the major challenges that people face. Many start a business but within a short period, they are not able to proceed with it due to various challenges such as few customers and bad employee-employer relationships (Inc, n.d.). Therefore, the following depicts the importance of a succession plan for the success of a business.

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Effective Plan

Yes, the digital art company has a concrete plan to control the course and direction of the business. First, the owner has to be certain of the products that he or she is going to sell and ensure that they are available to the customers (MaRS Discovery District, 2015). The business that is used as an example will deal with the selling of digital artworks such as photography and paintings that are generated from the computer. Second, business leaders are supposed to work closely with customers who would dictate the rising need in the market, and this guides appropriately on what to offer them (Segal, 2017). This will enable the company to avail products as per the demands and needs of these customers.

Moreover, this attracts rapid growth and motivates innovation as well as enhances the appreciation of art. Eventually, working with an effective plan guarantees a business a high percentage of success (U.S. Small Business Administration., n.d.) Additionally, focusing on providing products that are of high quality attracts more customers and satisfies them. Customers prefer high-quality products and do not even mind how much they will buy. Third, employing art experts, who are market licensed helps in providing great views to the business and will effectively serve clients according to their needs, interests, and concerns. Art experts enhance the progress of a business for they advocate for the providence of products that are of good quality. Thus, an effective plan helps in running a business smoothly and efficiently.

People Resources

Employees need to be closely considered so that they are satisfied with effective performance. The following are the areas that should be monitored closely to ensure that employees are working under favorable conditions. First, as an employer, one is supposed to build a culture that controls all the people working in the business. For example, managing expenses requires a person to inspire the accounting professionals to plan budgets that are flexible for adjustments at any time.

In addition, when interacting with digital products, employees can provide a favorable approach (custom-made) for all clients (Baldwin, 2001). Moreover, sharing the purpose of the business to control the people working in the business ensures that those workers appreciate the chance of being allowed to contribute to the larger society (Weller, n.d.). Eventually, a good business environment and satisfied employees attract more customers and make sure that they uphold their loyalty to the business.

Nurturing Employees and Customers

People around the business, as well as the customers, need to be nurtured to contribute to the growth of a business. Firstly, employers need to share their mission of expressing varied styles of innovation to their employers. As a result, they will assist in providing original and quality works that are easily marketable. Secondly, the employees should be properly guided to make sales of essential products as per the need and satisfaction of customers (Baldwin, 2001). Nurturing them and feeding them with the necessary knowledge is very helpful to the employees, for some may have had inadequate skills.

Thirdly, the employees need to be motivated for sustainability in the industry. Maintaining the spirit of employees through nurturing will guarantee the existence of the business for a very long period. They should be provided with the right knowledge and information about the kind of products that are expected. Fourthly, customers are nurtured by providing high-quality goods constantly, which attracts more of them to the business. Some customers may not know the quality of goods, but if they are guided well, they will highly value the company’s products. Through their good remarks in the reviews, the business will manage to grow within a short period.

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Concept of succession planning

A business with a succession plan is likely to thrive since one can monitor such a business. Firstly, the plan involves having a purpose for the business (Myler, 2016). One should indicate the products offered, for example, digital artworks which will enhance the focus. Additionally, one should involve experts in the art world, which will help the company deal with high-quality products that will attract more customers to the business. Business owners should ensure that a culture under which all employees work is set to improve the quality of production. They also need to share their vision and mission with the workers to make them feel that they belong to the business.

Returns

Yes, indeed, efforts should be focused on the areas that give the best returns. Interest should be holistic, and this is what will make a business successful. First, a business without focusing on the employees may not be deemed successful as one that puts some effort into the workers. Therefore, owners should look forward to instilling an environment that is favorable to them. They should share their mission and vision with them to bring a sense of belonging to the business, which will boost their morale (Vanderelst, 2017). Eventually, motivated workers work to their fullest, and this steers standard production that attracts more markets.

The second focus on the customers creates a larger space for them in the market. With the provision of quality goods, their reviews will create a space for more customers, thus, leading to high returns from the business. Moreover, creating awareness among customers when innovations arise and serving them according to their necessities will boost the business. When customers are provided with artistic products that are appealing to them, they stick to that business and will help in acquiring new customers.

Careers

In favor of a digital art business, talented people would be advised to pursue careers that are vital in the digital art business. Firstly, a career in accounting would be essential since one will learn about insurance, how to budget, manage cash and keep financial records. Accountants help in filing tax returns and payroll tax. When an artist acquires accounting knowledge, it will be easier for him or her to run the business effectively without the need to hire accountants who incur extra costs.

Another career that artists would need to venture into is the law. Just as accountants assist right from the start of a business, attorneys are to be consulted before making business decisions that have legal implications and when preparing important business documents. The two areas are crucial in the running of a business and thus would be of added advantage to artists involved in the digital art company.

Conclusion

In conclusion, a business requires a succession plan to thrive in that particular industry and to avoid ambiguities while running it. Thus, a succession plan involves writing long-term plans, developing and nurturing the human resource and customers as well as concentrating on all areas holistically. These are some major contributors to the success of any business when it commences and its development in the future.

References

Baldwin, M. D. (2001). The strategy of succession planning. Web.

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Inc. (n.d.). Succession plans. Web.

MaRS Discovery District. (2015). Succession planning for startups. Web.

Myler, L. (2016). Succession planning: Why every entrepreneur needs to prepare for the worst. Forbes. Web.

Segal, C. (2017). Thinking about starting a business? 5 things to do right now! Web.

U.S. Small Business Administration (SBA). (n.d.). Closing down your business. Web.

Vanderelst, N. (2017). The importance of vision and mission statements. Web.

Weller, J. (n.d.). Free start-up business plan templates and examples. Smartsheet. Web.

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