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The ongoing Covid-19 pandemic has left all of us in a situation of uncertainty, fear, trauma, helplessness and our businesses at the verge of collapsing. Folks have been at the receiving end on both Personal and Professional front, tales of children losing both their parents, founders of companies passing away have become a common norm these days, Covid-19 has not been selective in effecting a particular age group as people of all age groups have been hit by this global adversity.

The outbreak of Covid-19 has not only hampered the well-being of countless individuals but has also impacted global trade and commerce on large scale. Lockdowns no doubt have been impactful in slowing down and curtailing this menace but it has brought the economy to halt. India being a developing nation has been hit very hard by the pandemic specially if we talk about our economy, it has been devastated in last 16 months. Keeping aside the big businesses which have organized structure, it is the small businesses and industries which have face the wrath of this global disaster, this is more so because these small organizations are more often than not are operated by a single individual (Sole Proprietor) and the rest of the individuals/employees in the organizations are barely the implementers, so when these “Sole Proprietaries” retire, die the businesses end up collapsing on account of lack of or no proper “Succession Plan”. MSME’s the target audience of this article are the ones which have been grappling for a well drafted succession document/plan over the years as this sector has never received its due attention.

Succession Planning has become an essential ingredient for businesses specially for the MSME’s in last couple of years simply because there has been a constant change in the overall business environment in our nation on account of demonstration, GST implementation, Covid-19 pandemic, economic downturn, etc. It is important to note that these MSME’s lack various key aspects of business such as skilled labor force, accountability, proper communication coupled with uneducated or disinterested next generation which makes them vulnerable to economic changes.

Succession Planning has become an essential ingredient for businesses   specially for the MSME’s in last couple of years simply because there has been a constant change in the overall business environment in our nation on account of demonstration, GST implementation, Covid pandemic, economic downturn, etc. It is important to note that these MSME’s lack various key aspects of business such as skilled labour force, accountability, Proper communication coupled with uneducated or disinterested next generation which makes them vulnerable to economic changes. Plan”.

Succession Planning which involves preparing a Will and registering it, Execution/Probate of Will, preparing a Family Settlement, preparing a Family constitution for family businesses, Trust Fund creation, amongst others, can play a pivotal role in securing/ protecting the flourishing businesses and ensuring that the hard-earned wealth do not pass into unwarranted hands. Succession Planning is really the “Pressing Need” in these times of pandemic as it would help in securing, preserving, protecting the assets of the business along with ensuring that value of the business remains intact. It also facilities in achieving inter-generation transfer of the businesses to the intended parties in a trouble-free manner.

This concept is also vital in allowing the business to tackle the unforeseen events/adversities such as the present pandemic. A well-documented/planned succession plan will lead to numerous benefits such as smoothing the decision-making process, regulating the manner and the extent to which the transfer of business and wealth will take place, will act as a guiding force in managing the business operations, it will also reduce/avoid the legal battles concerning with the business operations, wealth allocation and its distribution thereby saving time and money. Whereas in the absence of succession planning instances of unwarranted legal battles will come into play which will ultimately lead to collapsing of the businesses causing immense number of hardships and monetary loss.

In the end it would not be wrong to state herein that present pandemic has highlighted the imperativeness of “Succession Planning” and moving ahead to ensure business stability succession planning will become the norm and a well drafted succession plan will become a pre-condition before commencing any new business venture.

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