Life is unpredictable. The last 14 months have driven that point home. When it comes to your business, unpredictability leads to uncertainty. And there’s nothing more uncertain than running a business without a succession plan.
I’ve worked with enough business owners to know the reasons why they’ve hesitated to formulate a plan.
- They’re too busy with the day-to-day tasks of running the company.
- They’re not ready to lose control.
- They don’t have anyone to takeover the the business.
While each of those reasons is understandable, nothing is more critical to an organization’s future than a plan for leadership succession. So, if you don’t have a well-conceived plan in place, it’s time to act.
Succession planning can help you think long term. Your immediate deadlines are important. But they shouldn’t eclipse the future of your company. An unexpected death or resignation could force you to make a rushed decision with an outcome that would almost certainly be less favorable for you and your business.
Succession planning can help you identify potential leaders. Not all businesses have clear-cut successors. Even family-run businesses have children who may not be interested in taking over. Succession planning can help identify employees with unique abilities and skills that can help a company grow.
Succession planning helps you control the outcome. Giving up control is difficult, especially when it comes to a business you spent years building. But, a successful exit strategy takes months, sometimes years, to complete. By that point, you may be ready to step back. Either way, a proactive approach gives you more control over the result. The reasons for procrastination are understandable. But the absence of a clear succession plan can pose a serious risk to a business. Let the financial experts at Miami CFO help you build a solid succession plan.