Business Owners: Put Your Successor in a Position to Succeed

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07 Jun Business Owners: Put Your Successor in a Position to Succeed

When it comes time to transition your role as business owner to someone else, you will face many changes. One of them is becoming a mentor. As such, you will have to communicate clearly, show some patience, and have a clear conception of what you want to accomplish before stepping down. The following are tips on putting your successor in a position to succeed.

Key information

Find ways to continuously pass on your knowledge. Too often, vital business knowledge is lost when leadership or ownership changes, causing a difficult and chaotic transition for the successor. Although you can impart a great deal of expertise by mentoring your replacement, you need to do more. For instance, create procedures for you and other executives to share your wisdom.

Begin by documenting your business systems, processes, and methods through a secure online employee information portal, which provides links to company databases. You also could set up a training program around core business methods and practices — workers could attend classes or complete computer-based courses. Then, you can create an annual benchmarking report of key activities and results for internal use.

New challenges

Prepare your company to adapt and grow. With customer needs and market factors continually changing, your successor will likely face challenges that are different from what you encountered.

To enable your company to adapt to an ever-changing business world, make sure your successor understands how each department works and knows the fundamentals of key areas, including customer service, marketing, and accounting. One way is to have your successor work in each business area.

Outside help

Also have your successor join industry trade associations and community organizations to meet other executives and successors in diverse industries. In addition, require them to review and, if necessary, help update your company’s business plan.

To encourage your successor to develop relationships with key players inside and outside your company, include them in meetings with managers and trusted advisors, such as your accountant, lawyer, banker, and insurance agent.

Fruitful future

Ideally, when you walk away from your company, your successor will feel completely comfortable and ready to guide the business into a fruitful future. Please contact our firm for more help maximizing the effectiveness of your succession plan.