Operational & Strategic Benefits
A retirement plan can help reveal operational weaknesses that can be fixed in time to maximize value before retirement. Retirement planning can also become a "second vision" for your business, asking extra-long-range strategic questions such as:
- What is the future direction of the business?
- What products or services will we sell in 10 years? 20 years?
- How will our markets change in that time?
- What types of people and resources will we need to be competitive?
- Who are the key people to develop and nurture for the future?
By its nature, a retirement plan needs the support of the future leaders, who must work with you to implement. In the end, the strategic advantages of retirement planning can include:
- motivating key employees or family members to educate, train or otherwise prepare for future roles;
- aligning the needs of the company with available resources;
- helping the company recruit and retain better people;
- encouraging new ideas to improve internal processes and outside opportunities; and
- clearing the air, lessening disappointment and possible departures of key people.