Succession planning presents challenges with accompanying risks to the business and its employees. eBusinessAppraisals.com offers five tips to help you develop an orderly transition of power.
An excerpt from the document:
1.Determine your successor. Like most business owners, you might easily prefer your offspring, or another family member, to take over. But you must take into account their skills and experience in assuming your role. Suddenly thrusting the family member to a position of power can be disconcerting, at the expense of the company.
It would be advisable then that years before the transition, the family member join the company to learn all the ropes of the operations, from the simplest task to the major responsibilities s/he will eventually manage. This will help you evaluate the family member’s drive and enthusiasm to be part of the company and contribute to its growth, and determine his/her effectiveness in the future role.