Owning and running a business is no small feat. Chances are your business is your life so you might not want to think about the day you retire and have to leave your business in someone else’s hands. However, business succession planning is an important part of running a business and it requires a lot of thought. Having a solid business succession plan can help your business thrive and succeed in the future.
Perhaps one of the most important parts of a business succession plan is choosing a successor. Picking the person who will take care of your company in the future is a big decision. Here are three things to think about when choosing the right person to take over your business.
You may be tempted to choose a family member as your replacement when you retire, especially if your business is primarily family-run. Choosing family to take over has both pros and cons though. On the pro-side, having a family member take over can be a good fit, a son, daughter, brother, sister or other relative may understand the company better than an outsider. Chances are they have been around the company for a while and will know the ins and outs which could make for a smooth transition.
However, you should not choose a family member just because they are family. Sometimes a family member will not actually want to take over the business and therefore will not be the best fit. Be sure you carefully evaluate whomever you are thinking of picking and know they will dedicate as much time and effort as you did when running the company.
Goals and ambitions
Your successor should have clear goals and ambitions regarding the company. Further, these goals and ambitions should align closely with the vision you have for the company. You want to choose someone who can put the company on the path to success and a bright future. When selecting a successor, you may want to ask them questions about their plan for the company in the future and evaluate how they plan on achieving this.
Attitude and compatibility
Making sure your successor is a good fit for the company means a variety of different things. They should fit in with the culture and get along with their co-workers. During the process you should observe how potential successors operate in the work force and with your company. Their attitude and compatibility with the company is an important part in setting them up for success.
Succession planning is an important part of any business and selecting a successor is an important part of any succession plan. You want to be sure you are choosing the best person for the job so your business is left in good hands.