Pooled Employer Plans Financial Statement Options BOI Reporting Rules Privileged Users Medicare Premiums DOL Business valuation Trust Fund Recovery Penalty Value-Based Sales Fringe Benefits Green Lease Strategic Planning Financial Reporting Marketing Strategy Succession planning health care benefits Cyberinsurance PTO Buying Media Screening Pipeline Management Billing Best Practices Solo 401(k)

Mentoring Can Make Your Succession Plan Better

The owners of many companies launch their enterprises with a business plan, a written document outlining the company’s strategic objectives and practical means of accomplishing them. Likewise, many owners leave their businesses via a succession plan, a written document outlining how the company’s ownership will transition.

Often, however, these two documents never cross paths, much less join toward a common goal. If this is the case with your business, and you have already identified your likely successor, mentoring can make your succession plan better by uniting it with your business plan.

Establish trust

One of the principles of mentoring is establishing a relationship based on mutual respect and trust. So, as your company evolves, you will need to make sure your successor is learning the skills and gaining the knowledge they will need to keep your business competitive and, ideally, take it to higher levels of success.

For example, if your company has always just sold widgets and is now expanding to help clients service the widgets, you will need to make both strategic and operational changes. This will allow your successor and staff to be better equipped to handle a diversified business that is both product and service-based. Under a mentoring relationship, you can disclose these plans to your successor in a confidential setting and start laying the groundwork with them to move the business in the new direction.

Meet regularly

Another principle of mentoring is making a definite commitment of time and face-to-face contact, so meet with your successor often. The first days of running a company are particularly stressful, but coaching during the period leading up to the transition can help successors manage the pressures.

During this time, you also can provide a secure environment for your successor to apply these new abilities and assume more of your responsibilities. To maximize your mentoring efforts, have your successor meet monthly with key personnel to discuss current matters, growth, operations strategies, your and your competitors’ products and services, and industry trends.

Create an effective plan

These are but two of many principles of mentoring. Please contact our firm for more help maximizing the effectiveness of your succession plan.

Related Articles

Talk with the pros

Our CPAs and advisors are a great resource if you’re ready to learn even more.