You’ve worked hard to build your business into something that you can be proud of. However, without succession planning, all of that hard work goes to waste should you no longer be the one leading the team. While no one wants to think about their time ending with a company they’ve founded, that day eventually comes for everyone.
Create a solid succession plan for your business with these five tips and feel secure in your company’s future.
1. Be Proactive
Succession planning reaches farther than just your position as the owner or CEO. Be proactive about having a plan for all key employees. Identify all key employees and create a succession plan for each position. This doesn’t mean you’re looking to replace your most valuable team members. What you are doing is protecting your business should those people leave. This could be through a planned departure like retirement or a sudden separation, such as an employee giving notice of other employment or someone getting terminated.
Create a clear outline of what the day-to-day tasks are for everyone. Then look at what that position and those responsibilities would look like should that person leave. You can use this information to begin cross-training employees for a smooth transition.
2. Identify Future Candidates
Recruiting from within is an ideal solution for identifying potential replacements for succession. You can do this for your position by looking at those who understand the business, its future goals, and potential challenges. This person should be able to step into your shoes as a leader.
For the other positions, ask yourself who the strongest candidates are. Then, begin training those people to prepare them for a possible promotion. Don’t forget to ask these potential employees about their career goals. You don’t want to waste time and resources investing in an employee with personal career goals that aren’t in line with your business goals.
3. Evaluate Recruiting Efforts
While you’ll want to consult with your human resources department to ensure you comply with employment law, you can begin to tailor your recruiting efforts to align with your succession plan. This is where you look to fill gaps in talent and skills. If you don’t have anyone internally who would be a solid candidate for a particular position, you can look to hire someone for a lower position that you can mentor and train for eventual growth. This person will require training, but hiring them early gives you a chance to train them so that they are ready when you need them.
4. Do Trial Runs
Don’t wait until you need your succession plan to find out if it works. Do test or trial runs with your chosen succession employees to see how they perform when given the opportunity. Perhaps you empower them to be the acting manager when someone goes on vacation. Or you let them take the lead position for a special project outside of their regular scope of business. Evaluate their performance and adapt to strengthen your succession plan.
5. The Family Business Challenge
Owning and operating a family business presents a unique challenge because you also have to navigate personal relationships and professional ones. It can be useful to consult with an attorney who can advise you on the best methods for protecting your business. This ensures that someone with the right knowledge and skills step into your shoes and not just the close family member who stakes their claim first.
Start Succession Planning Today
It’s never too early to start a succession plan for your business. Start with your position and then work your way through the company structure, identifying key positions. Look beyond the obvious candidates for those who show drive and initiative. Communicate with your chosen employees to foster career growth to prepare them for a potential future succession.
Schedule a free consultation today and let our skilled attorney help you create the necessary legal documents for your business.
