You have spent the last several years building and establishing your business. Over time, it has grown to support you and your family.
When you want your business to support your loved ones into the future, you need a plan for who will take over your company when you retire or pass away. A well-structured business succession plan can ensure your company can have continued success.
Here’s what you should consider as you decide who will be your successor.
Choose someone who wants it
Just as you had certain inclinations when you decided to pursue this business rather than another, your friends and family may not have the same interests. Pay attention to what skills and interests your loved ones have and talk to them about what they see for their future.
As you have conversations with your loved ones, you may discover someone who is interested but does not know how to pursue that interest. On the other hand, someone you thought had the talent to take over may want to follow another path.
When you choose a successor who has a genuine interest and passion for building the company, there is a greater chance that they will remain committed.
Preparing your successor
There is more to successfully passing on your business than writing up paperwork that establishes your successor. You can help your successor feel prepared by finding ways to develop their skills and experience, such as:
- Allowing them to shadow employees in different areas of your company
- Guiding their educational choices
- Developing their skills in your business
Developing a plan for your business’ future means that you can give the right successor the tools they need to grow your business into the future.