The amount of work required to start a business, make it successful & keep it growing is substantial. Unfortunately, the business owner isn’t done even when all that has been accomplished.
There are many challenges to developing a successful succession plan for your small business. Common challenges to succession planning include fear, confusion, uncertainty, an undefined action plan, and dysfunction. A recent article discusses how to overcome some of these challenges.
Many succession plans are hindered about uncertainty regarding the economy, as well as the success of the business itself. To best shield the succession plan from uncertainty, be sure to hire the best employees possible for the transition. Moreover, attempt to lock in key employees who are vital to the businesses continued success.
An undefined action plan is particularly harmful to a succession plan because it can lead to gaps in ownership and poor follow-through. It is important, therefore, to integrate the succession plan into your strategic plan for the business. To keep the plan on track, consider documenting expectations, creating a timeline, and crafting ways to measure success.
Lastly, dysfunction is often rampant with family business succession. Although this may be hard to avoid, consider communicating every aspect of your plan with your heirs. Be sure that your children understand the reasons for the decisions you have made, and listen to their concerns and opinions.
Importantly, remember that there is no standard solution for every business. If your business succession plan should stall, seek help from an experienced attorney or financial advisor.