Planning On Leaving Your Business To Your Child? How To Build A Successful Succession Plan

Over half of the UK’s SMEs don’t
realise the true value of having a succession plan, but in today’s
fast-paced corporate market ignorance is far from bliss.

Without a succession plan, your legacy could fail or be
driven in an unprofitable new direction, so it’s important that you prepare for
whatever life throws at you, your family and your organisation.

Here are some of our tips for those business owners who
still haven’t finalised their succession plans.

Prepare Your Successor

You need to make sure that your child has the business
acumen and qualifications needed to succeed in your organisation, and this
means supporting them through university and helping them to earn experience in
your company and others. Find them a university course that will give them a
solid grounding in your market or in business in general. You also need to
share with them your vision for your business and guide them through everything
they need to know about making it a success going forward.

Help Them To Network

Alongside a grounding in business, your offspring will also
need a strong network of connections to support them through their journey to
becoming the leader of your business. Once you’ve found them a university
course that will give them the education they need, you can set them up with
accommodation that will allow them to mingle with and befriend future
innovators, visionaries and titans of the business world. If you’re looking at
student accommodation for your child in a bustling city like Cardiff, then
consider using premier accommodation provider Collegiate, which offers
properties packed with amenities to help students socialise and prosper.
Students living
in these properties are able to network with the best of their university’s
student population, allowing your children the chance to meet and bond with
future industry peers who could provide them with valuable support.

Create A Comprehensive Plan

When you think of creating a plan and actually having a
document ready for your children for when you leave your business, you probably
think of just giving them the basic facts and letting them work out the rest
for themselves. However, this could leave them struggling to get up to speed
when they take over from you, particularly if you have to leave suddenly due to
an emergency. As such, it’s important that you have a comprehensive plan in
place that includes details of everything your child could possibly need to run
your business efficiently.

Leave Them With A Supportive Team To Guide Them

Once you’ve left your business, you need to make sure that
other staff members remain to provide your child with guidance and the benefit
of their experience. Long-term
staff members are incredibly important to the success of your business, so
create a supportive internal culture that staff will enjoy being a part of. You
should also make your senior team aware of what will happen after your
succession and make sure that they all feel confident in remaining with your
company.

Succession planning in business can be a long and arduous
process, but by using these tips you should be able to understand what you need
to do and create a viable plan for a prosperous future.