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Recyclers News Press
You may have a dream of retiring and handing over
your business legacy to your family but you need a
plan to get there. A
business succession plan
provides
clarity of direction, training of future lead-
ers, secures the careers of employees, and delivers
on warranties to your customers.
Many small business owners have no exit strategy
for their businesses in the event of their disability,
retirement, or death. Given the current economy, it
isn't surprising small business owners focus their
energies on business survival and future growth.
However, a
business succession plan
not only
means having a plan for the unexpected
(including financial hardship, injury, disability
and even death) it also means having a plan for
transfer of ownership when it comes time to
hang up your hat and retire.
Continuing a business beyond one generation of
leaders requires a succession to plan smooth the
way for continued success. Devising a formal plan
that outlines who will own and operate the com-
pany, once you are not in the day-to-day role, is a
critical path decision that has a direct impact on
long-term business profitability.
There is no "one plan fits all" when it comes to de-
veloping a succession plan for your business. But
following
including choosing and training a
successor) can help provide some practical direc-
tion.
1. Choose Your Successor
It's difficult to choose a successor for your own job.
Experts generally estimate that succession planning
should begin 15 years before you intend to retire.
This way you have time to oversee your successor
as he or she learns the business and hones his or
her skills.
2. Develop a Formal Training Plan
for Your Successor
To develop a successful training program for your
successor, identify the critical functions of the com-
pany. Then have your successor work in each of
these areas. Immerse your successor in the busi-
ness of your company so he or she sees both the
depth and breadth of the operation. This may sound
simple enough, but there is a certain amount of
"letting go" that goes along with teaching your suc-
cessor by allowing him or her to learn, grow and
make mistakes before assuming the helm. By creat-
ing a culture that encourages the person to take
charge within broad guidelines, you establish space
for your successor's style to fit with your broader
business goals.
3. Establish a Timetable
Set up a training timetable and a timetable for shift-
ing control of the company. If succession is to be
successful, you, your successor and your employ-
ees need to know who is in charge of what and
when. Your successor can't succeed if you overrule
decisions routinely. Also, a timetable helps motivate
your successor to move through his or her training
program quickly and successfully, with a clear un-
derstanding of what the coming roles and
Developing a Business Succession Plan
How are you going to exit your business to retire?
