A succession plan is a series of documents, contracts and steps that you can use to pass your business on to someone new. If you haven’t crafted one yet, here are five reasons that you may want to get started:
Your business is your legacy.
Every single business owner will one day leave the business. In the best-case scenario, it will be once you’ve met all your personal goals as the owner. However, just because you met your personal goals doesn’t mean the business has to end. It can live on as a legacy, but only if you take the right steps now.
You can move on to newer projects and challenges.
Building your business is likely one of the most challenging and rewarding things you’ve done. However, just because you did, it doesn’t mean you have to rest on your laurels. Starting a new business is a way to test your skills. There are always new mountains to climb.
Taking a step back doesn’t mean you won’t reap any rewards.
“Moving on” does not necessarily mean fully divesting. It can, if that’s what you want. However, you can still reap significant financial benefits – in terms of stock options or some other compensation package – and not be involved in day-to-day or strategic decisions.
The future may need a new perspective.
With new technology and new social perspectives, things change. Markets change. You might have been the perfect person to run things when you were building. Now, maybe things are different. It’s not to say that you couldn’t do that. But you also don’t necessarily have to. Someone is ready to take on that challenge.
Retirement is a beautiful thing.
Putting down the spreadsheets and titles and taking time for yourself is a dream that many people across the world yearn for, and you get to live it. You did a great job building things up; now you can relax and live a new life.