It takes a lot of effort to plan, prepare, start, manage, sustain and grow a business. However, most ventures revolve around the business owner. If the entrepreneur does not have any business partner or family members involved and when unexpected things happen on the owner without any backup plan in place, all those hard work may go down the drain.
To ensure the continuity and growth of the business, especially when one wants to, later on, be on the business rather than be in it, putting together a succession plan won’t hurt and may even be beneficial to the entrepreneur. Having one doesn’t necessarily mean that you are leaving the business. Instead, it can help you focus on more important roles rather than taking on several responsibilities.
Ensures continuity and assures stakeholders
Creating a succession plan is a way of securing the continuity and future of your business. Whether you want to take on a different role, expand the business, start new ones or retire from the company, it will assure your investors, board, staff and clients that the company will continue to operate and carry on the vision and legacy it wants to create. It guarantees your stakeholders that there will be no void in the organisation should anything inevitable may happen to you or the business.
Motivates current employees and hones prospective leaders
Succession planning is usually done through internal movements in the organisation. Going that route can encourage your current employees to perform well in the hope that they will someday take on a higher position, which can be one of the positions you hold. You can evaluate members of your team who has the potential to take on bigger responsibilities. It will also hone prospective leaders within your team as you equip them with skills and qualities that are needed to fill in a leadership role in the business.
Fills in the gaps
When you put a succession plan in place, you may be able certain gaps in the organisation that you might not have seen before. It allows you to see things from a different perspective and gives you room to address what you may have missed before. When you look at possible candidates for an important post in your business, you tend to step back and look at things from a bird’s eye view and then you zoom in to the details, giving you the opportunity to think ahead of possible problems and come up with solutions or alternatives.
Provides opportunity for personal and business growth
Although most business leaders come up with a succession plan during the times when they intend to leave the organisation, it is not always the case. You may want to take on a board role rather than handling the day-to-day operations of your business. There may be instances when you want to start new businesses while maintaining the current one. Whatever circumstance you may have as a business owner, having a succession plan gives you more room to grow as an entrepreneur and expand your business.
If this is something that you are wanting to do in the future, it is good to discuss this with your HR and board so you can put a proper structure and system in place to get a succession plan going. But even before you draft a blueprint of your plan, you can first seek advice from mentors or other entrepreneurs who have done it before. Also, know the repercussions that may come with having that plan in your current setup. Nonetheless, it’s something you might have to face later on along your entrepreneurial journey.