Succession Planning For Small Business Owners

Succession planning is something a lot of small business owners overlook. Many people don’t see the need to put a plan in place regarding someone taking over their company, especially if it is something that doesn’t seem to be happening in the immediate future. However, you don’t want all of the excellent progress you have made to be undermined, and this is why it is vital to develop your best talent now so that you have people in place to take over when the day comes. Keeping that in mind, read on to discover some top tips regarding succession planning.

Explore all options

It is easy to think that the only route to go down is to find the perfect individual successor to take over your role. However, there are a whole host of options available to you. For instance, it may be viable to set up a number of divisions, and have each one lead by a senior manager with a considerable degree of experience.

Track potential successors

One of the most pivotal things you need to do is make sure you track potential successors. This begins by identifying individuals who you believe could take over your role. There are many different business analysis tools and techniques you can put in place to assist you with this, including personality assessments, strength assessments, performance reviews, and such like. You are not only looking for someone who has the skills and the capability to be a leader, but you need an individual that reflects the culture of your organisation.

Communicate and be honest

You may have identified someone that you want to take on a leadership role, but, have you asked them if they want to? Opening honest and frank discussions is of paramount importance to get a thorough understanding of what people really want to do. Making assumptions can put your entire succession plan in jeopardy.

Offer general management training

You also need to put plans in place to facilitate growth. You cannot expect the people you have identified to automatically become a leader; you need to give them the tools to do so. Therefore, it is vital to invest in general management training and such like.

Use the services of an accountant

Succession planning can be difficult to do on your own, which is why you are advised to use the services of someone with a considerable amount of experience in this area. Look for an accountant that offers succession planning services, as they will be able to show you the wealth of viable options you have available to you, and they will ensure the whole process is handled smoothly. At the least, you need a part time bookkeeper to get all of your finances in order.

Learn to let go

Last but not least, one of the biggest challenges when it comes to succession planning is undoubtedly learning to let go. If you see your company as your ‘baby’, it can be tough to pass it onto someone else.  This is another reason why hiring an accountant in London is advised, as you will have an objective third party who can ensure your feelings don’t get in the way of the process.