Succession in a company is a significant shift that determines much of the company’s future. From interns to executives, the ripple effect of succession is substantial. To prepare your company for such a shift, there are quite a few things you need to plan for. We outline here a few things you should keep in mind for a proper succession planning strategy.
Start Making Your Succession Plan!
Develop a Strong Plan
Visualize the succession in your head and how you imagine it will all play out. By starting to build a plan, you’ll begin to see everything forming. You should realize quickly whether the current plan is realistic or not. You will also likely find that your project includes several aspects of your business you hadn’t thought about. Organizing even the most seemingly trivial parts of the company will ensure a smooth transition.
Find A Successor
If you’ve already found a successor, then your well on your way. However, it is a good idea to find a second successor, and maybe even a third. You should know your successor well enough to speak to them about things that may be on your mind. Don’t pick just anyone and hand off your business blindly, in other words. Be careful to pick someone who aligns with your values and work style. Get to know them. As you do, your plan will be easier to implement. If you can line up your views with your successor, the transfer of power will be smooth.
Note Possible Changes After Exit
Part of building a plan is knowing what personnel changes will occur once you leave. If your successor is an outsider, they might be keen on bringing in people from their end to the company. You want your employees to be protected, particularly those who have served you loyally for years. Hammering out the details of retention and personnel changes is critical.
Secure Finances
Review all finances before stepping away. At the end of the day, what does your retirement look like? What will you be walking away with after years of hard work? These are questions you must answer. Tax implications, retirement income, sale price, and more are all things you should be making notes of each day. Your company finances are a vital part of your succession planning.
Review Your Plan
Once you have taken a look at all the things mentioned above, you should review your plan. Succession planning demands high attention to detail from the inception of the idea to the ink on the paper finish. Keep in mind that it is not only your future but the future of many, at stake. A smooth transition will make the process easier for everyone involved.
Plan Your Future
You earned your walk into the sunset! In addition, knowing that your employees will be taken care of should motivate you. Once your plan has been laid out, set it into motion. As each part of it is completed, take a step back and observe until the end. Thorough succession planning can be the difference that makes all the work worth it. Enjoy the fruits of your labor and embark on a new adventure – you truly deserve it.