Succession planning for small business owners can be very challenging. After all, they have built the business from scratch and would like to believe that they are going to run it forever. Giving up control has never been easy for anyone, especially for something that you created on your own, the challenge is even greater. You are apprehensive and almost always assume that it will all collapse like a pack of card the moment you turn your back.
But the fact is that is an unrealistic thought. In fact, whether you have a large business or a small business, succession planning is extremely important. It will no doubt drain you out emotionally as well as physically, but the fact is as an able entrepreneur, you will not want to do anything that harms the interest of your business in any manner whatsoever. Think about a plant that you nurture as a sapling. Every new leaf that comes out is a source of joy. Would you mind appointing a gardener if that can ensure better health for the plant once it starts blooming? The answer would be a unanimous no, and the same is true about the business you set up.
This is what can guarantee that the business will not wilt away once you give up control. Most importantly this also ensures that you can enjoy your retirement period as wonderfully as you did working to establish your business.
Don’t Wait Too Long for Small Business Succession Planning
Succession planning for small business can be a rather heart wrenching experience. You could be going through emotional trauma as well as an extremely exhaustive phase in trying to identify the right candidate. Remember choosing someone to pass on the mantle can’t be simple. This is exactly why you must have sufficient time in hand. Remember it ain’t a great idea to wait for the last moment for a task that is both time consuming as well exhausting both physically and mentally.
An early start to the entire process ensures that you have sufficient time to mull about the matter and you can make a well planned strategy at the helm of the matter. Even from the perspective of your successor, the time in hand can be a crucial factor. It will ensure that they get enough opportunity to master the ropes of the business and identify the obvious pitfalls. They are not caught off guard and are fully prepared to deal with eventualities. Remember you are not just training someone who takes over the reign of business from you. Rather you are choosing a leader for tomorrow. Time becomes a crucial factor in this.
Get Proper Succession Planning Team
One of the greatest challenges for small business succession planning is getting the right perspective. You must understand in the absence of proper advice, the entire plan can go awry and the business can collapse. That is why as you sit on the drawing board charting out a succession plan, the first step is almost always about getting the right set of advisors on board.
A team of advisors comprising of lawyers, accountants, business partners and the succession planning team must work together to bring out the best possible option for a small business. You must be open and forthright in your discussion with them. Do not be biased or objective. The idea is that you work with an open mind and the sole objective of creating the best possible scenario for your business. They are also better equipped to guide you and the business through this complicated task of handing over the baton.
Make Exit Strategy & Succession Part of Plan
Well as an astute business person, I am sure you have a business plan in place. Include your exit strategy and the succession plan in it. Remember, only if you can incorporate small business succession planning in the overall broad plan, can you ensure a smooth and a hassle free transition in your business. Moreover, when it is part of the bigger plan, the entire organization works in tandem to bring it to ultimate fruition and let it take shape in a hassle free manner.
This pre-planning alone will ensure that you have the right tools and organizational efficiency to bring out a smooth transition when that happens. I do not just mean management level expertise, but also in terms of operation and cash flow, it is always better to pre-plan both your exit as well as the new entrant. A smooth transition is absolutely necessary for the health of the overall business. Be it the growth angle or the overall expansion that might be underway, in fact, the entire business can come to a halt if the succession strategy is not in sync with the broad business plan.
Revisit Plans at Regular Intervals
A small business succession planning cannot be completed in one day or even one sitting. It is extremely important that you keep revisiting the plan at regular intervals to continue adding more depth and substance to it. The world of business is extremely dynamic, and parameters of success keep changing constantly. Revisiting your plans at regular intervals would ensure that you are well geared to deal with the many eventualities and the final decision that you arrive at is a comprehensive culmination of all these factors taken into view together as a single entity.
It can be safely concluded that small business succession planning is not just about choosing the next person who sits on the chair or the President or Chairman. Rather it is a complex and emotionally charged decision making process. Of course, no one will be as passionate about a business as its founder but the trick is to find out the person who can be the next best and guide the business forward towards better growth and stronger footing. A well rounded and a comprehensive succession plan strives to achieve exactly this. The whole idea is to bring about a seamless transition and let the business growth continue unabated.
Therefore, this is the most important part of this article:
What Plan Should You Follow for Your Small Business Success?
If you run the small business completely on your own and through following your own business plan, then you are the one who has to plan for the succession of your business. This is not easy at all and chances are you give up at the middle of the way because you really don’t know what to do. You can’t make your small business successful through a trial and error plan.
However, there is a much better option:
You start your small business through following a proven business plan and model which is developed and tried by a successful company. This is what franchise small businesses do.
You run a franchise business, and so, as a franchisee, you have to follow the guidelines of the franchise company. As a franchise company like McDonald’s have been working for decades, they have a well-developed business succession plan that works with a very high success rate. That is why almost all of the McDonald’s outlets are doing great and the average ones make between $500,000 and $1 million in profits per year.
It is amazing, isn’t it? But there is a problem here:
You have to be able to afford an initial investment of between $1,003,000 and $2,228,000 to run a McDonald’s outlet. And, there are a lot more expenses to maintain and promote the business. Although the business makes a lot of money when it is launched, and so it covers the expenses and fees, the initial capital to run the business is a big deal for most average entrepreneurs.
However, thanks to the Internet, you can start an online business by following the business model of the successful companies, with this difference that you don’t have to spend the money that you must spend when you want to start a business like McDonald’s. The greater news is that the success rate of such business are a lot higher than the franchise businesses like McDonald’s, and they are a lot easier to run, manage and maintain.
It is unbelievable, right? Learn more how these businesses work: Following a Proven Business Plan Is the Success Key
This is possible because of the Data Technology systems that work based on the power of the Internet and its strong social networking and sharing system. Fortunately, we are just at the beginning and you can make a fortune with the Data Technology systems. You just have to take action and participate: What Is Data Technology and How It Can Make You a Millionaire?
By following the modern business plans as I explained above, you don’t have to be worried about your small business succession planning, because the system you follow does everything for you.