If you’re an entrepreneur, you probably remember exactly when you started your company. At the time, you had many things to think about, but you may not have been thinking about how to handle your succession planning.
In short, succession planning is about making sure that your business is prepared for the future – and one day, handing over the ‘reins’ to someone else. Certainly, the COVID pandemic has shown us all the importance of being flexible and ready for the unexpected, but in the long term, being prepared includes things such as:
- Weathering changes in technology, staffing and the economy
- Responding to disruptions in your industry
- Replacing key personnel (including yourself) when necessary
Undertaking succession planning is a sound investment of time and requires ongoing attention; it isn’t something you can do once and forget about. You should have plans in place for the loss of important people, business location(s), revenue streams, suppliers, goods and more. If you haven’t started planning, now is the time.
Here are 3 tips to help you start or improve your business succession plan:
- Think about your team
You’ve probably thought about what you’d do if you lost your most trusted employee, but what about other key staff? Your people make your business what it is, and some of your most important staff members are not on your management team. Think carefully about all your employees and their roles. By identifying all the skills and personality traits necessary for a particular job, you’ll have a better idea of what you need in a successor for every position and see how people could be mentored to advance within your company. Not only does this help with cross-training and ‘future-proofing’ your organisation, but it can reduce staff turnover as employees see a clear path for themselves within your business. - Look for missing pieces
Once you’ve examined your current team, see where you’re missing important skills, traits or even positions. Your business might need new capabilities in the future to maintain its current success. You may also need to create mentoring and training programs so that employees develop the skills they need to grow and lead, as well as reach their own goals and those of your business.
Remember to talk with and listen to your employees about their goals and role within the company, especially during unexpected transitions or major business changes. Thoughtful, ongoing, and timely communication with team members during both your planning process and through transitions will go a long way in ensuring the future success of your business. - Seek professional assistance
It’s highly recommended that you seek out a professional, impartial expert for advice during your succession planning. Creating a multi-dimensional team that includes experts in fields such as financial planning and banking, as well as legal counsel, can help ensure that you create transparency, encourage communication, invite new ways of thinking, and help explore financial issues and options during your business journey.
Need an expert adviser to assist you in preparing your business succession plans? Contact the experts at Accru today
