You've built something special with your business. Whether it's a small family enterprise or a growing company, you've poured your heart, soul, and countless hours into making it successful. But have you thought about what happens when you're no longer there to run it?
Many business owners put off succession planning, thinking they'll get to it eventually. Yet life has a way of surprising us, and tomorrow isn't guaranteed. One in four business transitions fails because the next leader wasn't properly prepared. You don't want your legacy to become part of that statistic, so read on to learn how to protect your life’s work.
Start With Trust, Not Just Skills
When you're thinking about who should take over your business, you might be tempted to look only at skills and experience. While these matter, trust should be your foundation. You need someone who shares your values and truly cares about your clients and employees.
Look for someone who shows sincerity in their communications, reliability in their actions, competence in their work, and genuine care for others. These four elements of trust will help ensure your successor can maintain the relationships you've built while moving the business forward.
You should also consider having potential successors gain experience outside your business first. This external perspective can bring fresh ideas and prove they can succeed on their own merits.
Make Room for New Ideas While Protecting Your Values
Your business has core values that have made it successful. Write these down and make them part of your succession plan. But remember that protecting your values doesn't mean refusing to change with the times.
Your successor will bring new perspectives and ideas. Give them space to grow into their role without feeling overshadowed. Set clear timelines for transferring different responsibilities, and be specific about who makes which decisions during the transition.
Remember that successful transitions happen gradually. Think of it like teaching someone to drive – you don't just hand over the keys and walk away. You start in empty parking lots, move to quiet streets, and slowly work up to busy highways.
Build Bridges Between Generations
The best succession plans create strong bonds between current and future leaders. Start involving your potential successors in the business early. Let them participate in meetings, work on small projects, and learn the business from the ground up.
You can build these connections through regular business meetings where everyone shares ideas and concerns. Make sure your successor spends time with your key clients and employees. The more relationships they build before taking over, the smoother the transition will be.
Don't wait until you're ready to step away to start making these introductions. Your clients and employees need time to develop trust in your successor, and rushing this process can damage important relationships.
Your Legacy Deserves Planning
Think of succession planning as your final gift to the business you've built. It's your way of ensuring that everything you've worked for continues to thrive, even when you're no longer there to guide it.
Start your succession planning today. Meet with potential successors, write down your values, and create clear timelines for transition. Remember, you're not just passing on a business – you're preserving relationships, protecting jobs, and ensuring your life's work continues to make a difference in people's lives.
Your business deserves more than hope and good intentions. It deserves a real plan for the future. The best time to start that plan isn't tomorrow – it's today.
The Advisor Who Can Help You Plan for the Future
As your LIFTed Business Advisor, I understand how challenging succession planning can be for business owners. That's why I offer a comprehensive LIFT Business Breakthrough Session, where we'll examine your current foundational systems and develop a concrete plan to protect your legacy. Together, we'll create a roadmap that ensures your business thrives for generations to come. With my guidance, you can confidently prepare your successor, maintain those crucial client relationships, and focus on what you do best—leading your business today while securing its future.
Book a call here to learn more and start protecting your life's work today.
This article is a service of Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.