Creating a good business succession plan is going to be critical to the future of your company. It’s also important to do this to give your family stability and guidance. You want to leave the business to the next generation, but you have to be very deliberate about how you do it.
Of course, every business is unique and so every situation is also going to be unique. However, here are a few key tips that can help.
Share the plan
First and foremost, identify who you want to leave the business to and share your plan with them. Talk about it in advance and determine if they’re even interested and when they would be required to start. They may also have input on what would make the plan go smoothly for them. In other words, this isn’t something that a business owner has to do alone.
Begin training early
Similarly, it’s usually best to bring the person into the company and train them on the job. Starting this process years before they actually have to run the company themselves can give them the experience and insights that they need to do so successfully.
Consider your heirs’ strengths
Additionally, many business owners are simply leaving their companies to their family members. This is fine, but you do want to consider the strengths and weaknesses that these family members have. You may be able to set up a succession plan that includes multiple heirs, but that also gives them different roles and responsibilities that they can uniquely handle.
Making a succession plan can help your business survive into the next generation. Be sure you know exactly what legal steps to take.