For many entrepreneurs and business leaders, managing a business is similar to going on a mission with people who share your vision. However, at some point, your task would reach its end, and it’s time to find someone else to take your place.
How do you ensure your business will continue to thrive even after you’ve stepped down? That’s what a succession plan is for.
Here are some tips to get started with a succession plan for your business.
Do I need a succession plan for my business?
Many small business owners often ask if they too need a succession plan for their business. The answer is yes. It doesn’t matter how big your business is. A succession plan would help you make sure your business transitions smoothly to new leadership.
Creating a Succession Plan
- Build a Succession Planning Team
It’s best to have a team with people who are process-oriented and know your business inside out before starting with your plan. Additionally, it would help choose people from different areas of your organisation to keep this team balanced.
Your succession planning team should also understand competency development to tap talent in your business with great potential.
- Take Stock of Your Business Assets
The next step is to take stock of your assets — including your staff. What are your assets, and how would these assets be affected by a change in leadership?
Part of succession planning is thinking about the future leadership of your business. Are there individuals within the workforce who can be the next leader of your organisation?
- Define Essential Roles and Responsibilities
One way to find top talent in your staff who may have what it takes to lead your business is to define essential roles and responsibilities and evaluate which of your team could take on these tasks.
- Revisit Your Strategic Plan for Your Business
Your strategic plan informs your employees and clients of what they can expect from your business in the years to come. Because of this, your succession plan must be in line with your strategic plan. Otherwise, your succession plan could fail.
You shouldn’t rush the creation of a succession plan. And it doesn’t hurt to start creating one as early as possible. This way, it’ll be easier to begin the process of transitioning the business to new leadership as you already have a plan prepared.
Need help with succession planning? Contact our team. We could help you create a succession plan together with the legal paperwork (in collaboration with our legal network) that meets your goals. Send an email to email@example.com or call 03 98859793.