How to select a business successor

As Minnesota business owners approach the end of their careers, they may realize they need to choose a business successor. This is an important decision to make and there are many things people need to consider as they identify potential successors.

One thing business owners need to consider is what the future might hold for their company. Leaderonomics.com says that it is a good idea for people to know what challenges might arise in the immediate future, as well as several years down the road. This can help them identify which skills might be most important in a successor. Additionally, some people might want to look back at their business plan to remember where they want the company to go and how it should get there. It is important for people to remember that choosing a business successor can sometimes become emotional or political, especially when people have worked together for a long time. However, it is a good idea for people to put aside their emotions and office politics when they make this choice.

When some people look for a successor, they may want to pick someone just like themselves. According to Inc. magazine, it is a good idea for people to choose someone who will take the company in a good direction and remember that this person may embody different qualities. Some business owners may want to speak to several advisors to hear multiple reasons why certain people might be excellent successors. Once people have identified a person to take over the company, they should typically lay out a plan for how the change will occur. Some people may want to hand over duties slowly so the successor can adjust to the new position.

Sometimes it may be beneficial for business owners to write out a succession plan. This plan should usually include information about the mission statement of the company, as well as lay out the organization’s future. Some people may want to include their estate plan in this document so their successor understands all of the important tax details. 

FindLaw Network