All things have a lifespan or life cycle: people, animals, inanimate objects, and businesses too.  As you grow older, you will be unable to operate your business the way you did in your younger days. It has taken you all your energy to conceptualize the business and grow it to where it is now.  A crucial aspect of building a legacy brand is planning the succession. Plan well in advance your exit/retirement so your business can continue running smoothly in your absence.

• Choose a successor

Think about the possible successors to your business, they could be your family, extended family, or trusted employees. You should engage all potential successors in aspects of the business where you think they will contribute most. During the trial phase, observe how each one would handle this business’ operations. You might find this useful in narrowing your choice of successor.

• Discuss what is important to you

An open discussion with your family about your vision and expectations is always a good idea.  Make sure all potential successors are aware of your business vision, goals, and objectives, and ask if there are any thoughts or opinions about them. By doing this, unpleasant situations and disappointments can be avoided in the future.

• Mentorship program

Even if you have identified a successor, it doesn’t mean they will know how to run things from the get-go. In order for them to run the business like you, they will require guidance. In your mind, the business should run in the same way or much better than it does now. Start grooming them as soon as possible; it is crucial that they receive extensive training and encounter quality leadership up close. Encourage them to participate in the daily monitoring process and integrate their suggestions in the development plan. Introduce your successor slowly to family clients and customers.

• Document Succession Plan

Work with your attorney and CA to establish a succession plan which will include details on how you envision the business going forward. Your family and any interested parties should be made aware of your vision and desires for the company. By doing so, you’ll prevent future family conflicts and misunderstandings. Attorneys and accountants should be involved in your succession planning.

• Revisit the Plan

A succession plan must be constantly reviewed so that any changes may be implemented. The business dynamic may change, inflation may occur, or your successor may decide to leave the company. As a result, you will need to have considered a second successor early so that everything can proceed smoothly.

A succession plan will ensure a smooth transition of responsibilities without any hassle. By communicating your vision, goals, and objectives to the family, you build trust, and when you choose your heir, members will understand why you chose them that way. In addition, you will also be able to secure your financial future and that of your family.