It might seem strange to be thinking about exiting a business while itâ€™s still in a start-up or growth phase, but the reality is that all business owners will step away from it at some point. There are any number of reasons why: retirement, or handing the reins to family or to someone on the management team. Whatever the reason, itâ€™s important that the business is always in good shape to sell or pass on.
The last thing anyone wants is to have to organize the business for handing over at the last moment. No-one ever knows what’s going to happen that might prevent them from continuing, so planning is essential and something that should be done early on.
This is especially true if a business owner is planning to hand the business over to a family member. They need to be fully prepared for their new role. There’s a basic process that any business owner should follow to make sure they’re ready to take over:
1. Let the successor watch the owner work, so they can learn as much as possible.
2. Dip their toes in by letting them make some decisions, with the business owner’s guidance.
3. Give them more decisions to make as they gain in confidence and ability, with less guidance from the owner. Let them make mistakes and show them how to fix them – it’s the only way they’ll learn.
4. Give them total control. Give them the confidence to be truly ready to run the business alone.
The below article goes into succession planning in more detail.
Read the full article at: www.dailymail.co.uk