This article was contributed by Software Advice, an online resource that provides reviews and comparisons of HR software.
Succession planning ensures success for your small business after you’re gone.
Most small business owners don’t think about succession planning, assuming they’ll be able to run the company, well, forever. However, it’s never too early to start thinking about succession, especially if you’re 10 years out or less.
A succession planning consultant should discuss these matters and more in greater detail, but give them some thought ahead of time to expedite the planning process.
1. Make succession part of your business strategy.
Think about what you expect your company to look like when you plan to retire, and consider the qualities and skills you expect your successor would need at that point to take over. Continue to re-evaluate your expectations as you get closer to retirement.
2. Build your dream team.
Your succession advisory team should consist of the people who understand the most important aspects of your business, like your accountant, business attorney, HR director and business partners. These people understand your wishes, can help you strategize the plan for succession, and should be prepared to handle critical aspects of your business to ensure a smooth transition.
3. Visualize your successor.
If you’re a successful business leader, you may be inclined to look for a successor who has the same qualities and personality, assuming your company needs the same type of leader to continue running it in the future. Instead, think about the kind of leader who can take your business to the next level, not who got it to the current one.
4. Identify potential successors.
It’s never too early to start looking for candidates. Always keep your eyes open for leaders within the company and in your personal and professional networks who have the traits you want in a successor.
5. Start grooming leaders within your company.
Even though your successor may not come from within the company, failing to develop your next tier of managers, leaders and supervisors within the organization could create a void behind you. Keep an eye on promising employees and think about ways you could expose them to multiple areas of the business.
This article was contributed by Software Advice, an online resource that provides reviews and comparisons of HR software.
