How to Create a Business Succession Plan
When you hear the word business strategy, you probably think it is something related to branding, financing or partnership. Have you ever thought about continuity? Every entrepreneur has the vision of building and running a strong business. Even a trader online might have the same goals. But what they fail to do is taking steps for the future of the business.
Did you know 70 percent of small business owners don’t have a succession plan? It is a strategy that identifies future leaders at your organization. These plans are used for addressing changes in your business when an employee resigns, retires, gets sick, dies or gets fired. It is more of an action plan to prepare your business for contingencies. It helps you identify and train the right person for advancement into key roles. A succession plan is something each business (big or small) must have. It needs to be written now because you never know when you will need it.
Yes, it is not easy to pick a successor. The only easy way to is to sell everything and lock the business when you retire. But like other owners, you would also prefer the thought that your business thrives after you have gone. The simplest option is to appoint a family member to take your place but they may not be the right fit. So how do you make it easy? How do you create a succession plan? Follow these steps to get started:
#1: Set Some Goals and Objectives
Like any other plan, you will have to establish some goals and objectives for your succession plan. First things first, review your business plan and see if the goals you have set are attainable. Now develop a collective vision using the same goals and objective but this time, add the successors.
It’s totally up to you whether you want professional management for your business or you want to bring the family in the managerial positions.
#2: Keep Your Options Open
Never disregard the employees who are promising. Since you want your business to be even more successful after you are gone, you need people with the best skillset. Even if an employee’s current title does not make him a perfect fit for a higher position yet, it doesn’t mean you should ignore them. If you see some potential, count them in.
#3: Make Everyone Aware Of Your Vision
Have a meeting with all the potential managers and convey them your vision. This doesn’t just mean one meeting and they will learn everything. You have to help them acquire adequate planning and leadership skills so that they can lead the business after you. This is the step where you can also consider sharing your plan with the board of directors and human resources.
#4: Offer Regular Feedback to Your People
If someone outperforms on a project, note that down. Track the top performers, their achievements and try figuring out what they are good at. In this way, whenever a new management position opens, you can refer them.
#5: Offer Training to the Peak Performers
Once you have identified the top performers, it is time to offer them a mentoring relationship. Offer them all the help needed for developing new skills and refining their existing skills. As a good leader, you need to develop strong interpersonal skills in them too. You training will come a long way.
#6: Do a Trial Run
So how can you be sure the succession plan you have developed is actually good enough? Do a trial run. Go on a vacation and leave the people you have chosen in charge. This will give you an idea of how prepared your team is and whether or not they can take big roles.
#7: Develop a Hiring Strategy
Once you have identified the employees for the role of successors, it is time to take some action. You can use the same succession plan for developing a hiring strategy. You will then be able to identify where to focus the recruiting efforts.
Get Started With Your Succession Plan Today
Simply put, the only way you can ensure your business doesn’t suffer from the consequences of change is to make a succession plan. It is never too earlier to write your succession plan. This way, whenever you need it, all you have to do is implement it. Ask any expert and they will tell you the time for discussing future is never when the crisis is in the motion.
When the time comes, nobody will be in doubt who is to take the role of the leader in the company. The company’s future will be secure. Keep in mind, a good succession plan doesn’t have to be perfect. It is similar to a strategy for CFD stock trading which can never be a one size fit. Give yourself all the peace of mind needed to work on this plan.