As a business owner, you should ask yourself; why should I create a specific plan, and for what reason? How should I plan to take care of my family and employees over the long term? What is the best time for me to start the transition plan?
With proper transition planning, there is a high chance of business owners achieving all their visions, missions, and objectives especially in the early stages of the business.
While in most cases it is never late for an owner to create a transition plan, it is best for an owner to meet with his or her team of transition experts as early as possible and device a schedule for periodically reviewing and updating any plans and documents.
There are benefits of transitioning earlier than later:
Have a transition plan regardless of your age or social status. In the event you decide to never go to work, will your business continue to thrive or cease to exist? Those are some of the questions you should be asking yourself.
I decided to talk about this topic because I have realized some business owners do not plan and do not know what they want for their companies. They are not planning to retire therefore are comfortable with where they are.
Nevertheless, having a successor is important. You do not know what might happen. If something comes up, someone must be ready to take up the leadership job.
This brings us back to the power of planning. Something I have preached always and every day in my teachings. Understand that without knowing why you are planning; you cannot understand why your company needs a transition plan.
It starts from the roots. Having a strategic plan for your organization/company and understanding the whole process. Therefore, to transition your business successfully, it is important to proceed with a careful, deliberate process:
Review your current plans: Review your current information and determine whether it is still pertinent or needs to be updated.
Build your team: assemble your team of advisors: They will guide you on what you need to do and the steps you need to take.
Determine and document your goals: What is your long-term vision for your company, yourself, and your family? At this point, it’s necessary to determine and document your goals. Think about the future of your company, but also consider your aspirations and your family’s goals. Keep in mind the ambitions of your business partners and your employees, as well. This step is crucial because your objectives may dictate which strategies and tools you will need to incorporate in your unique transition scenario.
After all this, it will now be time to implement your plans. You have now spelled all your goals to your successors, meet with your team of advisors to help you review your transition plan, and appoint a team member to coordinate the work of others.