When you own your own business, it can be difficult to decide what happens to your business when you retire. More often than not, you will have to choose a successor. Forbes has some tips on choosing a successor for your company.
Do not wait around to plan your succession. Many business owners do not think ahead to the future of the business upon startup. After all, you may only start your business for supplemental income and then realize that it is worth more than you initially believed.
One way that you can plan and figure out a successor is to form a team. This team can help you figure out the best strategy for choosing your successor. If you need it, you may want to consider an executive recruiter to help you evaluate talent. You could even develop a training program for your future successor.
Now, some business owners consider passing the business off to a family member. Before you do this, make sure that the option appeals to the family member of your choice. Likewise, you should never pass the business off to just anyone. Make sure that it is a person who you can trust with the business and that understands the financial structures.
Once you have the successor in mind, you can put forth a training program to ensure that your successor succeeds and continues forward in your image. It is important, no matter who you choose, that you are transparent about the succession process. You need your company, vendors and any others to understand the process.