You already know that you need a business succession plan and perhaps have even taken the initial steps to start documenting what this might look like if you were to leave the company voluntarily or as a result of disability or other incident. The next stage is to consider potential successors to determine whether or not you already have the necessary talent on your team or would need to rethink more broadly about finding that person or people.
Assess the crucial aspects of running your company today and determine what are the qualities and skills that this talented person would have in order to be successful. If you own a family business, it’s natural to think that the next person to take over the company will be a child or other family member. However, if this has not been discussed directly with them, you have not accounted for the possibility that this person might not be interested in taking over the role.
Make sure you have a face to face conversation about the possibilities and what this could look like for them. The right succession plan will clarify the responsibilities of this person as well as how it might impact other family members. It is critical for everyone to be on the same page about understanding their value, and if you discover in this conversation that your intended loved one has no interest in serving, you will need to start thinking about other leaders within the company who can step up. External candidates and team members are a great place to turn when family members are not appropriate.
Look at the skills that they currently possess as well as the ones that they would need to develop. Once you know what each candidate has and what they might be missing, you may be able to more effectively address the growth process needed to prepare them for their next role.
Need more help creating the business succession plan for your company? Our Pasadena estate office can help you connect the business and personal aspects of your future planning. Schedule a call with us today to get the strategies you need.