What Happens When it’s Time for You to Step Down and Hand Over the Reins?
What Is Succession Planning?
Succession planning ensures your legacy lives on, and your hard work continues to benefit your employees, customers, and community long after you have retired.
It is the process of identifying and developing new leaders who can take over your business when you’re no longer able, or no longer want, to run it. It’s a crucial part of any long-term business strategy and one every business owner should consider since it is designed to minimize disruption and lower risk during the transition period.
How Does It Work?
For business owners, it involves creating a plan for the transfer of ownership and leadership of your company. It can take many forms, from grooming a family member to take over the business to identifying a talented employee who can lead the company into the future.
To make it work, start by identifying potential successors within your organization who are capable of taking up those roles. Then, collaborate with them to develop their skills and provide them with the training and support they need to succeed.
With this, you create a pipeline of talent within your organization, which can help you retain your best employees and ensure your business runs smoothly.
When you invest in your employees’ growth and career advancement, you can foster a culture of loyalty and commitment, which can benefit the business in the long run.
Emergency plans can also be set in place to prepare for unexpected changes during challenging times.
One of the primary advantages of this type of planning is it provides a clear path for your employees’ career development. When employees know there is room for advancement within the company, they are more likely to stay motivated and engaged with the organization for the long haul, leading to increased job satisfaction and productivity.
Your company will also have a more skilled and knowledgeable workforce since supervisors will be able to mentor employees effectively, allowing them to transfer knowledge and expertise. This not only benefits the employee but also the company as a whole, as it ensures there is a pool of qualified candidates ready to fill important roles when opportunities arise.
Moreover, shareholders of public companies benefit from proper succession planning as it provides them with the assurance the organization will continue to prosper even in the event of unexpected leadership changes.
This critical business strategy for business owners is an investment in the long-term success of your company and one that will pay off in spades down the line.
Don’t wait until it’s too late to start thinking about your exit from the company. Take the first step today to ensure your business continues to thrive even after you’re no longer at the helm.
Jodi Perez, CEPA®, CFP®
Financial Advisor, Raymond James
20635 Amberfield Drive, Suite 102
Land O’Lakes, FL 34638
Any opinions are those of the author and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Independent Financial Services is not a registered broker/dealer and is independent of Raymond James Financial Services.
Written By: Jodi Perez
As a CERTIFIED FINANCIAL PLANNER™ professional for the past 32 years, Jodi understands the financial planning process and how important it is when working with clients to help achieve financial and personal goals throughout their lifetimes.