Continuity and succession plans can be mistaken as interchangeable, but there are important differences you should be aware of when protecting your business’ future.
A continuity plan addresses the question: If I suddenly faced a long-term illness, permanent disability or death, who would take care of my clients and staff? It’s meant to ensure your business remains viable until you can return to work or your practice can be sold.
A succession plan covers the details of the sale of your practice when you retire. Because a continuity plan addresses the unpredictable, it should be finalized before your succession plan. Some advisors use a single hybrid plan that covers both continuity and succession.