Over half of the UK’s SMEs don’t realise the true value of having a succession plan, but in today’s fast-paced corporate market ignorance is far from bliss.
Without a succession plan, your legacy could fail or be driven in an unprofitable new direction, so it’s important that you prepare for whatever life throws at you, your family and your organisation.
Here are some of our tips for those business owners who still haven’t finalised their succession plans.
Prepare Your Successor
You need to make sure that your child has the business acumen and qualifications needed to succeed in your organisation, and this means supporting them through university and helping them to earn experience in your company and others. Find them a university course that will give them a solid grounding in your market or in business in general. You also need to share with them your vision for your business and guide them through everything they need to know about making it a success going forward.
Help Them To Network
Alongside a grounding in business, your offspring will also need a strong network of connections to support them through their journey to becoming the leader of your business. Once you’ve found them a university course that will give them the education they need, you can set them up with accommodation that will allow them to mingle with and befriend future innovators, visionaries and titans of the business world. If you’re looking at student accommodation for your child in a bustling city like Cardiff, then consider using premier accommodation provider Collegiate, which offers properties packed with amenities to help students socialise and prosper. Students living in these properties are able to network with the best of their university’s student population, allowing your children the chance to meet and bond with future industry peers who could provide them with valuable support.
Create A Comprehensive Plan
When you think of creating a plan and actually having a document ready for your children for when you leave your business, you probably think of just giving them the basic facts and letting them work out the rest for themselves. However, this could leave them struggling to get up to speed when they take over from you, particularly if you have to leave suddenly due to an emergency. As such, it’s important that you have a comprehensive plan in place that includes details of everything your child could possibly need to run your business efficiently.
Leave Them With A Supportive Team To Guide Them
Once you’ve left your business, you need to make sure that other staff members remain to provide your child with guidance and the benefit of their experience. Long-term staff members are incredibly important to the success of your business, so create a supportive internal culture that staff will enjoy being a part of. You should also make your senior team aware of what will happen after your succession and make sure that they all feel confident in remaining with your company.
Succession planning in business can be a long and arduous process, but by using these tips you should be able to understand what you need to do and create a viable plan for a prosperous future.