Once you’ve identified those key individuals you want to include in your succession plan, it’s a good idea to assess their skills and help them to improve by offering trainings. Be open with your current staff about the succession plan. Those that are talented and love what they do will want the opportunity to become partners. Let your staff know there is room to grow and that you look to current staff first to fill those positions.
Sharing A Vision
When choosing successors, it’s not enough to just find individuals with the skill set needed to do the job; they also need to share your philosophies and your vision for the company. They need to adhere to your same moral code. While having new ideas and perspectives is a great thing, it is important to find someone who has a similar outlook and vision for the company. Having that connection will mean a much smoother transition and less risk of losing clients once the transition happens.
The company culture is a very important aspect of your brand’s identity. You want to be sure that when you leave, the people who were attracted to your brand, as either employees or clients, will remain loyal after the transition happens. Be transparent with current employees about your vision for the future for the business and find those who share your passion.
When Plans Change
While creating a succession plan is a very important step, it is equally important to recognize that while your plan may be solid right now, there could be need for changes as time goes on. Create a strong plan, but build some flexibility into it as well so that you can stay nimble if required. Perhaps your industry is changing and you need to prepare your staff with additional certifications or trainings. Perhaps you need to consider growing your staff larger than you originally anticipated. Being willing and able to pivot as needed will go a long way in keeping your company viable for the future. While circumstances or tools may change, one thing that should remain constant is your company’s overall position and values.
Don’t Rush It
As you get closer to retirement or to that next move, it’s important that you take the time to create an exit strategy, and that you do so well in advance of stepping away. Start working with your successor early on to ensure a smooth transition—before you’re ready to leave. It is also a good idea to introduce your successor to clients well before he or she takes the reins. Being transparent about the future is important for the overall health of your firm.
As you plan ahead for the future, whether you are a sole practitioner or have a team of employees at your side, the most important aspect of your succession plan is that you explore all the options available. Don’t be afraid to look into creating a plan for the future. Planning ahead is one of the greatest ways to ensure your company’s success in the future.
Benjamin A. Tobias, CFP, CPA/PFS, CIMA, AIF, is the founder and president of Tobias Financial Advisors. Tobias has been recognized by numerous publications over the years, including Worth magazine as one of the “Top Wealth Advisors” for multiple years.