Formulating a strong succession plan for your business is what any business owner should do, and always sooner rather than later. Succession plans are there to provide a long term framework for the future of the business, and for your own personal interests as the business’s owner, too. As a result, they also need to be able to protect against unexpected outcomes – and to be ready to be called into action at a moment’s notice.
Polish Your Business Strategy
After those first few years of growth and development, it’s easy for your business strategy to take a backseat while you get down to dealing with the ups and downs of everyday business management and growth, but the foundation of any strong succession plan lies in a strong and comprehensive business strategy. Revisiting and updating your business plan is a great starting point and one that you can’t afford to miss.
Identify Key Positions
Obviously, every role within your business contributes to its success in some ways, but knowing which positions are critical to the health and success of your business is the first step to creating any strong succession plan. You want to identify the positions that are critical to both the short- and long-term health and success of the business, in order to ensure the most robust plan possible.
Invest In Budding Talent
Training, mentoring, and creating those all-important opportunities for career development within your organisation are all essential to making that long-term investment into the business’s future leaders. Creating that roadmap for development over the coming years will ensure a framework that not only gives the business direction but your key employees, too. So too is creating a supportive working environment for all your staff; one that prioritises their professional and personal growth, alongside the growth of the business itself.
Liaise With A Solicitor
We mentioned above that investing in the business’s future leaders ensures a solid roadmap for the coming years – and any unexpected departures in upper management – but there’s more to it than finding the right people to gradually train up for the job. Being proactive about this is a job that is best done with the help of experienced corporate solicitors. Not all succession plans come to pass in the way we expect. While it is difficult to think about, worst-case scenarios – whether a business owner passes away suddenly, or suffers a major accident that impacts their ability to see to the business – can and do happen and, if the business is not prepared, things can go south very quickly. Having that succession plan in place means that the business can withstand a worst-case scenario and that your family’s financial interests are protected if you are unable to see to them yourself.
Employees you have earmarked for future leadership roles should be informed about your plans for them. This ensures that they are aware of the wide scope for growth within the company, and help to reduce staff turnover – particularly with regards to highly valuable employees.
Creating an environment where your cards are intentionally placed on the table will enable you to grow those professional relationships, and feel more confident about the future of your business.