I loved the TV series ‘Succession’ about a family that fights for control of the company amidst uncertainty about the health of the patriarch.  While it makes good TV when the company is massive and the family are wealthy beyond most people’s reality, in our world, similar struggles do happen

As the saying goes, there are only 2 certainties in life: death and taxes.  One thing proper succession planning can do is help with reducing the taxes, but nothing can stop the other!  If you are one of those people who loves their business so much that you don’t want to sell it and get out before death rears its head, then you have to start planning for your successors as early as you can.

Many family businesses rely on the next generation to take over, while others will look to the management team to step up.  The major point to get across is that just because somebody has worked with you for 10+ years, this does not automatically give them the skills to run the business when you are not there.  That would be like somebody sitting in the passenger seat of your car while you drive them everywhere. When you drop dead, would you expect them to be able to drive the car alone?  Watching is not the same as doing.

So what do you need to do, and when should you start?

Well, let’s answer the second question first.  Start NOW!  Even if your business is one year old and you are 24, start thinking about how the business could run with you not being there. When you recruit people have in mind, do they have the capability of taking this business over?  99% of people you hire will not, so you need to start looking early and when you find that one person, ensure you keep them.

I guess most people reading this are probably a little closer to the end of their business journey than the beginning.  If that’s you, then you really have to start thinking now about who is going to take the business over.  Think about the skills, attitudes and behaviours that the next leader of the business will need to have in order for the business to thrive.  Then review each of your team and score them out of 10 against this list.  For those at 7 or above, make a list of the attributes they have that make them a 7, and what it would take to get them to a 10.

Keeping it in the family?

You need to take the emotion out of this exercise, especially if the them includes family members.  Your 35 year old son/daughter is not the child that you remember them to be.  You need to see beyond that and recognise the person they are now, warts and all.  If you struggle to do this, then you need to get somebody else in to do the assessment for you.

If you have nobody that is more than a 7, then you will have to start from scratch.  You will not take somebody at a 5-6 and make them a 10.  You just don’t have the time or probably the skills to do this.  If they have not shown capability by now, they never will.  Get out there and start looking for better people, or be open to selling the business to somebody who does have these people.

Make a Plan

Once you have the person/people in mind, you then need to tell them about the opportunity.  Even if it is 10 years away, make it clear that you see them in your seat in the future.  Let them know that think that with a bit of work, they could be there.  Personally, I think giving a time line is key to this.  When I took on my first role at the age of 24, I was offered a partnership to replace the senior partner when he turned 60 in 4 years’ time.  I was 100% up for it and worked my arse off to get it.  He was a man of his word, and a few months before his 60th birthday he gave me the partnership agreement to look over.  I chose not to take it, but that is a whole different story.

You now have time on your side to get that person(s) up to the level where you are not only happy, but excited that they are going to take over.  They will need a Personal Development Plan so that both of you know what needs to happen to get them there.  This may include, training, coaching and mentoring.  Also, you need to go on more holidays so that they can trial what it is like being solely in charge.  You have to talk with them regularly on why you are doing things and ask them more and more questions on what they would do, even if you choose to do something different.

You also have to allow them to make mistakes and clean up their own mess and learn, just as you did when you started the business.  Think of it as if you having been working in the garden for years, and you have the callouses on your hands from the toil.  They have baby-soft hands that need to toughen up, so you protecting them from this is hard work doing them no good.

Ultimately, succession planning is about securing the future of your business and ensuring that it continues to thrive for years to come, long after you’ve stepped back or retired. By taking proactive steps to plan for succession and seeking expert advice along the way, you can safeguard your legacy and leave behind a lasting impact that extends far beyond your time at the helm.

Don’t wait until it’s too late – start planning for the future of your business today!

Need some advice on where to start, get in touch with me – kevinstansfield@actioncoach.com