Seriously, I love having things organized.
I also love a good contingency plan so that IF/when things go sideways the people who count on me aren't left floundering.
If you love feeling
- prepared
- confident
- organized
- ahead of the curve
Then succession planning will be a very satisfying experience!
For those new to the experience, I recommend starting with an emergency plan. This covers the 'what if' situations that you can't possibly foresee, are highly unlikely but could happen.
It's like an insurance plan - it creates peace of mind but without an annual premium!
An emergency succession plan covers 3 scenarios:
1. Unplanned, extended absences
2. Planned, extended absences
3. Permanent disability or death
Starting with scenarios 1 and 2,
Think about
- WHO you want and who is capable of running your business on your behalf as an acting executive. Who shares and embodies your vision? Who knows the business of your business and can make sure everything is working to maintain a profitable operation until you return? Who will the rest of the team respect and follow?
You'll also want to talk to that person to make sure they are comfortable being designated for that role.
- WHAT needs to be done to keep things running. What things do you do? Does anyone else know how to do them? What might they need to do and do well for an extended period of time without your input or oversight?
- HOW things will keep moving while you're gone. Is process documentation complete and updated regularly (especially of things you do and are responsible for)? Has your acting executive been trained on your duties and have the opportunity to do them independently? Do they have the permission and access to all documents, systems and relationships needed to act on your behalf (passwords, bank signing privileges, payroll or accounting systems, key advisors and professional service providers, etc.)
For scenario number 3, you need to take the additional steps of making sure to
1. Include your business in your estate plans. It's a good idea to make sure your estate planning and legal counsel are on the same page regarding succession plans and the legal documentation needed for things to go the way you want them to when the time comes. They might talk to you about financial power of attorney for the business, creating a trust, reviewing your operating and buy sell agreements, etc.
2. Talk to your executor so they know your intentions for the business.
3. Leave instructions for the acting executive re: contacting and working with your estate.
So where's the exciting part?!
I hope that as you think about preparing for the scenarios that might unexpectedly take you away from your business you get excited about creating a near-term plan that takes things off your plate.
Training your team to operate without you can immediately improve your freedom, flexibility and level of ownership autonomy. There is no need to wait for a worst case scenario to put your plan into practice.
When your business can but doesn't have to run without you, you truly get to experience the benefits and privileges of ownership. And you can achieve this level of delegation and independence in a way that
- empowers your team,
- reduces risk and concern about business continuity (people like job security!),
- retains your levels of ownership and control, and
- increases the transferability and value your business.
Purpose First Advisors specializes in helping business owners create succession plans that de-risk your business while increasing value and personal freedom.
