What questions do I need to consider during succession planning?

Have you created a succession plan for your business? Succession planning can help ensure your business keeps running smoothly while passing off the responsibilities to another individual. Postponing this important process can be detrimental to a business’s future success. Here are some of the key questions to ask yourself when you create a succession plan.

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Video transcript

Succession planning is the process of identifying and developing the Future Leaders of your business. Creating a successful business is hard work and takes a lot of time and passion. By creating a plan, you can ensure you give your business the best chance to prosper after you exit. The succession planning process involves answering the following key questions. 

1. Is your transition plan documented? 

Having the plan formalized is essential in creating clarifying now and in the future. It’s great to know what you want to happen when you exit your business, but it’s important to write the plan down. 

2. Have you selected and informed the key people? 

The plan may be to sell the business to someone or to transfer it to a family member. Either way, opening conversations with these individuals is important. 

3. Are the successors prepared? 

Defining the key skills that the successor needs and creating a plan to achieve those skills will help make sure they are ready for the position when the time comes. 

4. Have you revisited the plan recently? 

Things change, and periodically reviewing the plan ensures that it still meets your current circumstances. 

Proper succession planning takes time and is sometimes delayed because it can be overwhelming. Reaching out to a professional can help make this process smooth, and answering these key questions will ensure you create a plan that’s best for you and your business.