Andrew J. Sherman in his paper “The Entrepreneur’s Personal Financial Plan” wanted to open the idea what the process of the transferring ownership is. According to the article, nobody could be sure in his future, thus, every entrepreneur knows that, in days to come, there may begin a period for transferring his business knowledge to the next generation of entrepreneurs.
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The main tasks of succession planning are highlighted in this article. This process includes, first of all, choosing of a strategy, composing succession planning documents, choosing capable successors, family members, co-founders, employees, stakeholders (non-family member owners), financial buyers – in a word, choosing among the people who are able to manage the business. The company must meet market requirements and must be competitive if the transfer of ownership is assuming. Also, this difficult process provides planning of estate transferring. According to this, author shows the difference between ownership succession (it means the way the safety stock and holdings must be impropriated) and management succession (the way safety stock and holdings must be superintended), and says that the ideas like these must be separated. Effective succession and estate planning depends on the owner’s recognizing the importance of details when passing the wealth accumulation to the new holders. Another idea of the article is that the entrepreneur realizes that, for a great function of his cause, the business should be competitive and meet the requirements of the market economy, thus, only young specialists are able to provide and evolve these conditions much better.
A good measure is when the majority of businesses belong to the national entrepreneurs, and it is great because many qualitative economists can get a suitable job. The “Entrepreneur’s Personal Financial Plan” can be taken as a basis for entrepreneurs of all ages in case they do not know exactly how to make an ownership transferring, how to pass a right, to hold property and to title real estate of the company. Of course, this article has the main idea and it develops the notion of transferring rights on inheritance, but the author during its’ writing did a lot of unnecessary relapses. Thus, it is the only negative moment in this paper.