The Succession Planning Process: Understanding the Timeline

If you’re a business owner then you’ll doubtless be aware of the importance of practicing good business planning. In matters concerning your company, nothing can be left to chance. This is why 70% of business owners have a succession plan in place.

You want to always be mapping out your next move. This includes thinking about what’s going to happen to your business once you’re no longer in a position to run it. Even if it seems like a long way down the road right now, it’s never too early to start thinking about the succession planning process.

Read on for a simple and straightforward to what succession planning entails. Make the best decision for your business by informing yourself of all your options.

What Is a Succession Plan?

A succession plan should establish a framework for identifying and developing replacements for a business owner when she or he exits a business. Having a succession plan in place is important as it can determine the course your company will take in the future. It’s not an over-exaggeration to say that a succession plan has the power to make or break a business.

The Succession Planning Process in Action

When developing a succession plan for your business the first thing you need to do is determine the objectives of the company and clarify your vision for how you’d like it to proceed without you. You’ve probably already got a mission statement and this can be a good document to return to at this time.

Once you’ve got your objectives straight you’ll be in a position to identify the leadership requirements for your company. Who needs to be in place in order to keep things running as you’d like? Who will replace you after you’ve left?

Create a rough organizational chart that includes the most important positions. Now you can begin to look within your organization for potential candidates. You can look externally as well, of course.

Once you’ve found the talent you need you can slowly begin the process of training them for their future role. This is something that can take months and even years so it’s better to start as early as you’re able to. Of course, you’ll need to make sure the people in question and the wider organization are on board with your plans.

It can be a good idea to formalize your plans by committing them to paper and creating documentation that communicates your wishes. This way there can be no confusion about your intentions for your business.

Start Making Succession Plans Today

The fact of the matter is that the succession planning process can take some time to complete, so it’s something you should begin thinking about today. You want the peace of mind of knowing that your business will be in safe hands when you end your time there.

If you’re in need of more business tips we’ve got plenty. Check out some of our other articles now.