How do I plan who takes over my business?
Name the person or the route, a family member, a key employee, a sale, and then start handing over real responsibility years before you step back, one area at a time. Succession is not a document; it is a long handover. The plan matters most if something happens to you unexpectedly, so write down the basics now.
Decide the route
Family, a trusted employee, a group of employees, or an outside buyer. Each needs a different preparation and timeline. Not deciding is also a decision, usually the one that leaves the most behind when it is finally forced.
Hand over in pieces
Give the successor one real area, scheduling, a set of customers, the estimating, with the authority to decide. Then the next. Watching them run it while you are still there is the only reliable test.
Plan for the unexpected
If you could not work tomorrow, who would know the bank, the key customers, the passwords, what is owed and to whom? A short written document and the right insurance protect your family and your team.
The money has to work for everyone
A successor often cannot pay the full value up front. Payment over time, financing, or a staged buyout are common. How it is structured affects your retirement and their ability to keep the business healthy. Get professional advice on it.
Also asked
- When should I start succession planning?
- Years before you want to step back, and the emergency part, now.
- What if my kids do not want the business?
- That is common and better known early. It points to a sale, to an employee, or to building a business that runs without family in it.
- Who should help me plan it?
- An accountant and a lawyer who handle business transitions, and the successor themselves, early and honestly.
Related
Written for your trade
This is the kind of thing Solomon works through with owners using their own numbers. See how it works →