These days, the majority of small business owners across Massachusetts are from the "Baby Boomer" generation, and if you are among them, you may be thinking about the next stage in your life and wondering how to prepare your business for the transition. At Kajko, Wiseman & Colasanti, LLP, we understand that setting your business up for continued success involves two important steps: creating a comprehensive business succession plan and selecting someone to be your successor.
According to Forbes, the earlier you can get a jumpstart on your business succession planning, the better, and the less you rush the process, the more likely you will be to draft a solid, multifunctional succession plan that addresses all relevant areas. So, when might you want to start the process? Ideally, you want to give yourself at least five years to come up with your succession plan and choose and groom a successor, but if you can give yourself even longer, so much the better.
When you start thinking about who you want to lead your company in your absence, you may feel as if you need to have one single person in mind, but in reality, it may serve you well to maintain a short list of potential successors who have the qualities and capabilities you desire. In some cases, this list might include your family members or employees, but in other cases, you may need to look for a successor who is not currently a part of your organization.
Once you have a short list in place, you can take a good, hard look at your candidates and start developing the person or people you deem most qualified. The more time you give yourself to develop your top choices and prepare them for leadership, the more likely your business will be to undergo a seamless transition. You can find more on this topic on our webpage.