By Ingrid Vaughan

Perhaps at this point it feels like you’ll be working in your business until you’re 90, but the reality is, at some point you will need to consider what you’re going to do with the business that you’ve built. Will you sell it to someone else? Will you pass it on to a member of your family? Are you even interested in seeing it succeed beyond your own involvement? If you are, you need to give some thought to how you are going to prepare a potential leader to take your place at the helm. It’s not as easy as you might think, and there are a lot of factors to consider. You’ve developed a specific corporate culture based on your own values and priorities. How will someone else know what those values are and will they be willing to carry them on? You’ve established a certain way of dealing with your staff, and of representing yourself to your community. How do you know your successor will treat your staff the same way, and will carry on your good name?

In an article titled Talent Management in the 21^st Century; Help Your Company Find, Develop and Keep its Strongest Workers, Cindy McCauley and Michael Wakefield say this: “Wise leaders do not leave strategy or the bottom line to mere chance. They also know they can’t just hope everything somehow works out with the people in their company. By incorporating comprehensive talent management, an organization can assemble the right people it needs to manage and lead in the future.”

Now is the time to think about succession planning – not six months before you want to retire. Having a plan and system in place to identify employees within your own company  who may be positioned to take over, or recruit someone from outside, is essential for finding a successor you will feel comfortable handing over your business to.

As a business owner, you should be committed to the ongoing development of talented employees and to developing effective leaders within the organization. This will provide strength and stability to all levels of your company. Whether someone comes up from within to take over your business, or you hire from without, strong leaders inside your business will ensure a well-developed corporate structure able to handle a management transition with ease, and will also create long-term sustainability for your business after you leave.

Here are some things to consider as you think about creating a succession plan for your business. Don’t just think about it – write it down. Then it will be easier to create a formal plan when you’re ready.

1. What about your business is important to you to retain?
Do you want to ensure that you’ll continue to be known for the best service in town, or the best product? Do you want to make sure your employees are treated fairly and given opportunities to grow? Do you want your corporate culture to be preserved? Or your mission and core values to be maintained? You should have a clear idea of what you want your business to look and feel like after you leave.

2. If you could choose anyone to take over your business, who would it be?
Maybe you’ve already got your son or daughter in mind. Maybe you’ve been working with a senior manager who has been your right-hand man/woman since the start and you know they’d be the best one to receive the torch. Maybe you have no idea. But if you could choose anyone, who would it be? What qualities does this person have that you feel make them the best person to take on over your business? If you know the kind of person you want to take your place, it will be easier for you to find and/or train them into the leadership role.

3. How many of your systems are written down?
Do you have clear, comprehensive policy or procedure manuals on all aspects of your business? For instance, production, human resources, customer service? If you take over a McDonald’s restaurant, there is no question on how to run it. This unprecedented turnkey success has proven that management and leadership can be recreated – all you need to do is provide clear, step-by-step instructions. The more you have written down in terms of your systems and policies, the more likely someone else will be able to step in and uphold them.

4. Do you have a training plan?
Training a business successor is more complicated than hiring someone to answer phones or make sales. You can’t transfer your years of business knowledge overnight. Many successful succession plans take 6-18 months to complete. You should be aware and prepared to have a plan that includes training for all aspects of your business. What are your production rules and standards? How do you handle your finances – not only how you keep your books, but budgeting, forecasting, tax and business planning? How have you established your corporate culture and what do you do to maintain it (training, employee development,  rewards programs, etc.)? Who are your suppliers and what sort of relationship do you have with them? What marketing and advertising strategies do you have in place and where do you feel you need to go? Create a comprehensive plan for how you are going to transfer all this information to your successor. If you start now, you’ll be glad you have it in place when you need it.

5. What is your timeline?
Regardless of where you are in the life of your business, it’s good to start thinking about it, that you will do when you’re ready to give it up. You may not be ready to sell your business right now, but what if you unexpectedly became ill, were in an accident, or were forced to  take a leave of absence because of a family emergency? Such a plan might come in really handy to train a temporary successor who could hold the fort until you are able to return. And, if all has gone well in your absence, you may have found your permanent successor. Succession planning is something you should be thinking about. Work on it a little at a time   get your systems written down and in place – and know what you want to accomplish. It  may be one of those things you’ll be glad you took the time to do, when you’re ready to pass your business torch to someone else.

Ingrid lives and works in Victoria BC as a Human Resource Generalist. She is the author of I’m A Circle, You’re a Square, a book about increasing the effectiveness of workplace communication. In addition to her HR generalist skills, Ingrid has experience as a small business coach, employment counsellor, business writer and corporate trainer. She is currently the Human Resource Specialist for the BC Construction Association, Skilled Trades Employment Program.