Whether you plan to sell the business or pass it on to a family member, you want to be proactive to ensure the business will survive and thrive in your absence. This calls for thoughtful and intentional planning.
What is Business Succession Planning?
Succession planning is a simple concept, though it has many moving parts. The essence of the idea is deciding who you want to leave in charge of the business and making sure that person(s) is properly equipped for the responsibility.
Start by deciding which skills or experience are necessary to foster stability and drive growth in your company. Keep in mind there may not be just one person who takes on your role; it may involve several people.
- Continually measure potential future leaders. Look for performance on the three C’s—competence, connection, and culture. Does this potential leader’s style and ideals mesh with what you want for the future of your company? How do they connect with the other members of your team? Having leadership that shares your vision is extremely important.
- Use developmental tools to support your talent. Start grooming your key employees. Give them projects and assignments that challenge them and encourage their professional growth. Trust them to take the reigns of certain aspects of the business. This will help them build experience which can be extremely valuable down the road. You will soon see who can and can’t deliver in your absence.
- Involve your talent in your planning. Let your key employees know you have long-term plans for their professional growth. You want to make sure they are interested in assuming more responsibility.
It can be difficult to let go of sensitive information and responsibilities. However, this is an important part of helping your key employees develop their business acumen. Succession planning can be challenging, but the experienced professionals at Tennessee Valley Group, Inc. can help you get the process started. Contact us today for more information.