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How can you develop a strong succession plan?

On Behalf of | Dec 26, 2019 | Firm News

As a Delaware business owner, you should be used to making plans for your business. Even if you don’t see the time coming any time soon, there will come a time where your business has to change hands and you have to step down. According to Forbes, there is one certainty when you run a business: eventually, you will need a successor.

Begin the planning stages as early as possible. The transition, ideally, should take place over a number of years. There should be a clear transition period before the company changes hands. In the planning stages, keep your options open. If you can, try to have several people down the pipeline. Train multiple people at different levels and choose the one who is the most capable.

If you’re struggling with how to choose the most capable, keep company culture in mind. While skills are important, the CEO has to set the cultural standard for the rest of the company. He or she has to be able to maintain the company culture and this is why it may be crucial to hire within the company.

If you want a candidate with a unique experience, you should consider someone who has worked his or her way up through the company. Choose someone who has close relationships with your clients or customers. This will give the new CEO a good perspective when it comes to what the consumer wants out of your business. Some of the people who started at the top of the company, in vice-president positions may not know what the consumers want.

The above information is for educational purposes only. It is not legal advice.