Building a business is a lot of work. You spend most of your day making sure your company is running successfully, so it is easy to forget the long-term goals for your business.
Included in those long-term goals is ensuring the creation of a positive legacy for your company. Indeed, at some point, your business will need a plan to continue without you and if you do not have that sort of plan, the results could be disastrous for your business.
Here are a number of items that you should consider as you think about the future of your business.
The right plan takes time
As you think about who would be a good fit to take over your business, consider that there is more to the equation than finding the right person for the task. Even if your replacement comes from inside your family or your company, they may still need training before they are ready to run the business on their own.
Part of your business succession plan should include time to train your successor. Create a plan that includes opportunities for the new owner to spend time in each area, so they understand why you have chosen certain methods and procedures.
Your position may not be the only one to fill
It is important to choose the right person to fill your shoes, but the new owner will also need the right support. You have taken a lot of time to make sure you have the right people around you to help you be successful. Those may not be the right people to support your successor.
Once you choose the person who will take over your business, talk to them about the support they will need. Have an honest conversation about strengths and weaknesses so you can help them find the right team.
It is never too early to have a plan
Even if your business is still in its early stages, you should start to think about what will happen when you decide to step away from your role in the company. Depending on the structure of your business, you may need to consult with partners or board members about what your plan should include. As you think about your successor, keep in mind that the right person could come along sooner than you planned. You should have a plan for how to incorporate them into the business even if you are not ready to change gears.
The business attorneys at MAC have extensive experience working with businesses, both large and small, to assist them with developing strategies and procedures to implement successful succession plans.