Succession Planning: What is it and do I need it?

by Bethany McClellan

As a business owner, it’s important to plan for the future of your business. What would happen to the business if something unexpected happened to you as the owner or to one of your high-level leaders? From a planned retirement to an unexpected death, planning for the next step in your company’s leadership can keep the future of your business running smoothly.

Succession planning is selecting certain employees to be trained and prepared to move into leadership roles should or when the need arises. To designate these employees early in their careers to eventually move into leadership roles gives you time to ensure they are properly developed and a good fit for the position. Furthermore, having more than one person in mind for succession is also a good idea. If the sole employee flagged for succession decides to leave the company, a business owner would have to start at square one in preparing someone else. With a few potential leaders in mind, you could seamlessly continue the succession plan.

Something else to consider is creating two different types of succession plans. One in the case of an emergency situation and another in the case of an anticipated change in leadership. Both plans should be reviewed and changed as needed annually, as the needs of the business and employee statuses may vary.

The earlier you complete a succession plan, the better. The reason for succession planning is to lessen the negative impact of the unexpected. Every successful business owner needs a succession plan in an effort to prepare for the future of the company.

Bethany McClellan of Rapid Business Plans began her career in land acquisition and development with a national homebuilder and honed her small business development skills as Vice President of sales and operations for a local commercial fi re alarm contractor before starting her own company in 2014. In the 6 years since, Bethany has helped over 300 small businesses improve their profit margins, obtain loans and plan for their future. To learn more visit https://rapidbusinessplans.com/