How do you find your successor?

This is one important, and often the most important aspect of your succession plan.  You have to have as a goal of the succession plan not only organizing your business into a place that it can be handed over but also, who will be at the helm of your business, when you are no longer there. What if, you have an untimely demise?

A few questions to ponder:

1. will you need more than one person to fulfill the role(s) that you current do in the company?

2. does your successor(s) have to include a family member?

3. how much time do you have to enable your successor to take over the reins?

4. does your successor become a shareholder?  how much ownership?  when?

Some very serious, difficult questions.  All of these will take time to resolve and more importantly a lengthy time to implement.

Here are some thoughts and suggestions.  First, most of your succession plan can be developed more fully, once you have identified your successor(s).  You can first assess the person’s capabilities and whether or not their business philosophy and ethics are congruent with yours.   This is most important if you see longevity of the company as the primary goal.  Your successor may not implement the plans in the exact same way that you would but always has as the primary objective the growth and success of the company for the long term.

You should take time to get to know and understand your successor’s personal philosophies.  This can only be discovered in extensive one-on-one discussions, over meals, regular meetings (you would be a mentor).  In some cases, you could allow your successor to run a specific strategic initiative within the company to test if that person is able to perform in the way that you would find suitable for a successor.  This would be like a test drive.

Learn think apply!