With a variety of benefits for business owners and their employees alike, it’s really no wonder why Employee Stock Ownership Plans (or ESOPs) continue to grow in popularity. However, it’s one thing to read about the pros and cons of this type of succession plan in the latest business journal and another thing entirely to embark on your own ESOP journey.
That’s why Dave Phillips, president and CEO of Architectural Systems Inc., joins Dave Cain on this episode of unsuitable on Rea Radio to share his first-hand experience implementing an ESOP. We learn why he opted to put an ESOP into play, what the implementation process is like, and what goals they hope the ESOP will help them accomplish.
It takes a lot of time to create and implement a succession plan, so it’s really never too early to start putting one in place – but it’s very easy to discover you’re making the decision too late. Dave has given himself five to seven years to build a capable management team and turn operations over to them.
If you are a business owner, you will be interested in these topics discussed in this episode:
- The benefits of an ESOP for both the business owner and their employees.
- Why implementing an ESOP gives employees more ownership over their day-to-day work and control over their future.
- How you can finance an ESOP.
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articles & insight
Could You Give Your Employees The Keys To The Kingdom? – Having an ESOP in place is a great way to reward your employees for their work at your business and enhance your business’s retirement plan offering, but they aren’t going to work for all businesses.
How To Plan For What Comes Next – Businesses that fail to consider the organization’s future are at an increased risk for financial and organizational hardship. This fact has resulted in some leaders finally tackling the topic of succession planning in their own organizations.
Exit Plan – Do you have a plan to exit your business alive and well? If not, you could end up losing a substantial amount of money through poor execution.
official transcript
Click here to read the official transcript for episode 129, “Why One Business Owner Converted to an Employee Stock Ownership Plan (ESOP) for Succession.”