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What are ways to plan my business succession?

On Behalf of | Apr 5, 2021 | Business Law

You probably plan for your business to exist as a thriving entity after you step down or retire, so you want to have a solid succession plan in place so that the right person will succeed you. A succession plan is important to start on as early as possible and can involve many different aspects.

Succession plans will differ depending on the business involved. Assuming you have a business that is fairly complex and hires multiple people, Entreupenuer.com has some tips that may help you create the right succession plan for your company.

Identify positions that require filling

As part of your succession plan, your position will be an obvious one to fill. However, you must also remember that if you plan to promote your successor from a lower position in your company, you will have to fill that position as well. Alternatively, you might decide to divide your responsibilities among multiple positions once you retire. Design your plan to account for all the roles you will need to fill.

Describe required skills

Although you might find somebody you are personally comfortable with to succeed you, your company could fall into ruin if your candidate lacks the skills to handle your job. Think about the kinds of skills your candidate will need. Do the same for all the positions your succession plan will need to fill. From here, you can start looking among your workers or outside of your workplace for people who meet your skill criteria.

Train your successor

Do not count on your successor candidate being ready to succeed you right now. You should create a training plan that will prepare your successor to take on your job. Part of the training may involve letting your candidate assist with important decisions like hiring new employees. In time, you may feel ready to allow your candidate to start making management choices.

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