While there are business owners who know they have a family member ready to take over the business when the time comes, other Rockford entrepreneurs face greater challenges with their business succession. If a family member is not available or qualified, a business owner may have to look elsewhere for a successor, perhaps outside the business. However, many owners find the right person to lead their company is someone they have already hired.
According to Entrepreneur.com, many of the best successors are actually people who are currently a part of the business organization. Someone who works for you already has an idea of how your business operates, knows what it offers the public, and is perhaps aware of how your business is planning to grow in the future. A successor who is already known and trusted by your other employees may be someone that is more readily accepted as your successor than an outsider.
This does not mean your potential successor is ready to immediately assume your role. At some point, you will have to openly designate your successor as the person you want to take over your business. You will likely have to openly display to your employees through words and actions that the person you have chosen will run your business after you step down in order to make the successor credible in the eyes of the workers.
Once a successor is identified, you should do what is necessary to prepare your successor for the role of company leader. Bizjournals explains that successors should receive training in all aspects of running the business. Business owners should also give their successors opportunities to assume responsibilities. It is not necessary for an owner to step down all at once. A successor can gradually assume the role of company owner over time.
While selecting and training a proper successor may ensure your business will continue to operate after you have retired or departed the business, it may help to build additional safeguards in your succession plan. You might install a dispute resolution clause in case disagreements erupt between your successor and other parties in the business. Some business owners divide up responsibilities among multiple successors if no single successor can be found.