Entrepreneurs put a lot of time and effort into starting and growing their businesses. But those long hours seemed worth it when the company started making a profit.
If you put that much consideration into starting your company, why wouldn’t you put the same thought and planning into ensuring its continuity?
Choosing your successor
Have you ever considered what might happen to your business if key personnel, including yourself, suddenly become ill, decide to retire or unexpectedly pass away? Without a succession plan, you risk operational disruptions and losing clients. With a plan in place, you can:
- Ensure business continuity
- Prepare for unpredictable events
- Reassure your employees, clients and vendors
- Attract investors
The first step in creating a succession plan is identifying key roles, in addition to your own, that are essential to your business’s daily operations. You can then outline the qualities and skills needed for those positions.
If yours is a family-run business, transferring leadership to the next generation may seem like an obvious choice. However, you have to consider if they have the interest and skills needed to take over the business.
Many business owners first look to their current staff for a successor. Employees who have been with the company for a while will understand its operations. Once you’ve identified some potential candidates, invest in their development by providing them with training and development opportunities.
Sometimes, a business owner needs to look outside the company for a successor. There are some advantages to this approach. External candidates can bring in new ideas, different viewpoints and skills that may be lacking in your team. Furthermore, it eliminates the problems many people have transitioning from peer to supervisor.
Once you’ve found your successor, creating a timeline is essential. It should include mentorship and a gradual transition as you give them more leadership responsibilities. This gives both of you time to make adjustments as needed.
Creating your succession plan should start sooner rather than later. However, with your current responsibilities, finding the time to make a plan may be challenging. Consider working with someone who can provide guidance on creating and implementing a succession plan tailored to your company’s goals.
