Choosing the person to
take over your business after you exit isn’t about selecting someone who’s
exactly like you or even selecting someone you like. The most important thing
is that you choose someone who’s not only well-qualified for the role, but who
also has the vision and skills to lead your company into the future.
With so much riding on
your decision, you should be careful to avoid these three common mistakes
business owners often make when naming successors. Such missteps can cloud your
objectivity and diminish your chosen candidate’s ability to effectively take
control of your company.
1. Attempting To
Clone Yourself
Choosing a successor isn’t about cloning yourself—it’s about finding
someone to build upon what you’ve already accomplished and take your business
to the next level. The most qualified successor may turn out to be someone
whose leadership style, skills, and business strategy are entirely different
from yours. As long as the two of you share the same fundamental values and
vision for the company, you shouldn’t let the fact he or she manages things in
a different way cloud your judgment. Your successor’s way of doing things,
while different than yours, may be more effective.
2. Not
Considering The Future
Today’s marketplace is constantly changing, especially when it comes to
technology, so the skill set and business strategies that work now may not work
in the future. Think about how you’d like your company to grow and evolve, and
then identify those candidates whose skills and strengths best align with your
vision for the future. Choosing a successor is about ensuring your company’s
long-term success.
3. A Lack Of
Transparency
When it comes to making a major change in your company’s leadership,
it’s best to be transparent about the process. People are often resistant to
change—especially when it involves their employer—and if your team only learns
about the move when new leadership is announced, it could hurt their morale. Letting
your team know that succession planning is ongoing also helps build your team’s
trust in the process. It’s crucial that your successor not only has your trust
and support but your team’s trust and support, too.
Enlist
Our Support
No matter how you look at it, choosing the right person to take over your business can be
incredibly challenging. This is especially true if your choice includes family
members or close colleagues. We serve as your trusted, unbiased advisor to help
you make your decision on what’s objectively best for the company and not let
emotions get in the way.
What’s more, effective
succession planning isn’t just about naming your replacement—it involves every
facet of your operation, and planning for your exit is just as important as any
other planning you do for your business, if not more so. We can guide you through
the entire process and help ensure the business legacy you worked so hard to
build will continue to thrive no matter who is running the show. Contact
us today to get started.
This article is a service of Ganvir Law, Personal
Family Lawyer™. We offer a complete spectrum of legal services for businesses
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 a Business
Strategy Session for an ongoing business, which includes a review of all the
legal, financial, and tax systems you need for your business. Call us today to
schedule.