Building a successful business from the ground up is something to be proud of. Even more, if you consider the number of new businesses that do not make it past the first year. After all the years of focusing your energy and resources to make sure that the business grows and is profitable, there is an important aspect that you should not forget: what will happen with this enterprise once you are no longer able to run it as you do now. How will you pass the torch to the next leader or leadership group next in line?
This is where the subject of business succession becomes mandatory. Because not taking the precautions to put a business succession plan in place may be the equivalent of seeing your business fail or, as it happens in many cases, simply disappear if the baton isn't passed correctly.
What Should Be The Main Objective Of A Business Succession Plan?
Its objective is to ensure that the business is preserved while also providing a roadmap for an orderly and structured future transition between you and whoever will be at the helm next. Simply stated, a business succession plan should have two parts:
● Who the successor will be.
● How the business will continue to operate without you.
Borrow a page from the lessons from the pandemic and put in place a succession plan now. You never know what unpredictable situations might present themselves in the future.
Get Your Business Ready for A Succession
Implementing a smart succession plan does not happen overnight. Take the time to craft a comprehensive continuity plan that may include items such as:
● A strategy for the day-to-day operation of the business
● A review of all the processes in place now in order to determine which ones shall continue and which ones won’t
● An evaluation of all the employees and their positions, including which jobs will be impacted by the transition and the potential loss of key employees
● An analysis of the facilities and a decision on whether they still serve their purpose or if a relocation might be called for.
● A thorough plan to secure and back up critical data systems, applications, and infrastructure
The above points are just an initial guideline. Your particular business will have its own requirements, and the industry in which your business operates will also have an impact on the decisions you make. If you are not about to step down, keep the succession plan in a safe place and review it periodically to see if everything still looks good or if changes need to be made.
A Transition Is Unavoidable
Nobody lives forever, and also, you may not wish to run your business until the moment you take your last breath. Planning the transition means deciding who will run your business after you no longer wish to do so or are unable to continue at the helm. This can be a family member, a valued employee, someone who is interested in purchasing the business, or a combination of these possibilities.
By implementing a succession plan, you will be much more in control of the process and be a part of it. At bryanfirm.com, you can learn more about the importance of naming a successor to your business or professional organization.
Expect The Unexpected And Create Company Continuity
Life is unpredictable, and even the most successful business can disappear at the death of an owner or that of a key employee. Take the time now to think about the future of the company's continuity. With proper succession, there is no success!
