Succession Planning for Your Small Business

succession planning
Do you have a succession plan?
Did you know that 75 percent of small business owners don’t have a succession plan? Typically, planning your exit is the last thing on the minds of small business owners. However, developing a long-term plan is in the best interests of the business, employees, and you and your family. Have you taken the time to consider the future of your business and how it will live on without you?

According to the Bureau of Labor Statistics, about half of all private sector workers are employed by a small business. These employees, just like your family, are depending on you to run a successful business. No pressure, right? By preparing your business for life post founder can help ensure its continued success for those that are depending on it, which is why conducting succession planning for your small business is so important. Is your business prepared for life without you?

Transition Preparation

Of course you’re irreplaceable; you had the vision and passion for your business but not doing any succession planning could be disastrous for your business. Think of the businesses that have been operating for decades, typically they had a plan. Do you remember when Tim Cook took over for Steve Jobs at Apple? It’s was all part of a plan that they were smart to put into place and Apple didn’t miss a beat. Planning ahead allows you to think objectively and have your business ready for your eventual exit, planned or unplanned.

Planning Your Exit

For many small business owners this is an extremely difficult planning strategy to go through. You have seen the business go from birth through the rough teenage years and now into adulthood, so considering a succession plan won’t come easy. Before you call the accountants, estate planners and lawyers to help you determine the best business strategy to go about this, it will require some heavy soul-searching on your part.

How It Helps Your Business

Every business needs succession planning developed to ensure the business doesn’t come to a screeching halt without you. When your business can be self-sufficient even without you at the helm is when you know you have created something special. Great businesses are run by people, not by a person.

Is it prepared to live on without you? If not, consider what you could be doing right now to prepare your business for becoming something larger than just you.

About the Author: Grant Tilus is an Inbound Marketing Specialist at Rasmussen College. He is responsible for creating superior content and blogging about different degree programs including Entrepreneurship. Feel free to connect with Grant on Twitter and Google+.