Succession Planning Basics for Small Businesses

succession planning

Ensuring your business survives after you are gone requires a solid plan. While the succession planning process may seem overwhelming at first, do not let that discourage you from getting started. Once you learn the basics, it will be easier than you anticipated. Here are a few simple steps to help guide you in developing your plan.

Choose a New Leader

Determine if you will have an employee or family member who can assume the new leadership role. Be sure to make a selection based on who has the best potential for being successful as the new leader. Try to avoid making an emotional decision.

Mentor the Next Generation

Develop a training program to mentor the next generation to effectively take over the reigns. Clearly define roles, responsibilities and expectations so everyone is on the same page. Empower your successor to make management decisions, and learn from their mistakes, while you are still there to coach them through the transition.

Create a Realistic Timetable

Your timetable should include when control of the company will be shifted, and a training timetable for the new leader.

Develop an Exit Strategy

Determine how you will retire or leave the company, and what lies in your future. As your successor takes on more management responsibilities, be sure to spend more time away from the office. This will help make the transition run smoothly, and demonstrate your confidence in the new leader’s ability to manage the business.

Letting go is a difficult thing to do but you can ensure your company’s future, if you select, train, and install a new leader while you are still around. Be sure to demonstrate confidence in their ability, and let them lead.