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Why you should begin training your successor early

On Behalf of | May 17, 2024 | Business Planning

When it comes to business succession planning, it’s important to get started well in advance. This isn’t something you want to put off until you’re about to retire. Whether you’re leaving the company to an employee, an adult descendant or someone else entirely, you must plan in advance.

Below are three reasons why this is helpful:

1. Setting up a timeline 

First and foremost, the process goes smoothly if you set up a timeline in advance. When do you want to leave the company? Is the transition going to happen all at once on a staggered basis, where you slowly give up control and allow someone else to take over? The earlier you plan, the more comprehensive your timeline can be.

2. Offering substantial training 

Another thing to remember is that the person taking over the business needs on-the-job training. It’s best if you can spend a few years working directly with them so that they know how to run the company. This gives them a chance to learn the ropes and ask questions while you are still involved. You take on the role of a mentor.

3. You can do an evaluation

In some cases, your succession plan will include numerous employees who are going to be taking on new roles. If you start early, you can allow them to adjust and you can evaluate to see if it’s going to work for the business. This helps you to avoid mistakes like putting someone into a role that they are not equipped for.

Are you considering making a succession plan this year? It’s important not to put it off, so start looking into the legal options you have.