Succession in Business: A Quick Guide

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The owner and founder of Action Management Pros, LLC, Chris Scully, just released a new video about succession planning in business. Let’s discuss the key takeaways for your business: 

Understanding Succession

Succession is about preparing to hand over the roles and responsibilities of a business owner to someone else. Although often linked with exit planning, it doesn’t always relate to exiting the business.

The Role of a Business Owner

Initially, a business owner wears many hats - from janitor to marketer. Over time, these roles are delegated for effective succession. 

What is the best way to do so? Create a “playbook” for each role in your company. Even if the person you hire has more experience than you in a particular area, you still need a process that’s unique to your business. Plus, future people in the same position must understand the process, including strategies that worked or didn’t work.

Importance of Training and Documentation

• Train each new hire verbally, review each task a few times, clarify any questions, and then get them to work.
• At the end of the day, have them write their understanding of what you trained them on that day. Writing down the process allows the owner to gauge the trainee’s comprehension and helps with documentation; they’re writing the process down for you. If they don’t fully understand, you can edit their writing and retrain them so that they do understand.
• Documenting the processes doesn’t always mean writing; videos and audio recordings can also be effective for your company playbook.

Repeat this Process for Every Position

This systematic training approach should be applied to every role in the company. Over time, it allows the business owner to become an “absentee” owner, where they can trust their team to run the business effectively.

The Endgame

A successful succession plan ultimately leads to hiring or promoting a general manager, someone who can make decisions and strategize for the business. This can be someone who you're promoting to the position or someone you're hiring from outside. Depending on their exit plan, it may also lead to the owner fully exiting the business.

Conclusion

Succession planning is essential for small business owners aiming for long-term growth and eventual step back from daily operations. A business can thrive even in the owner's reduced presence by systematically documenting, training, and delegating.

For a detailed dive into succession planning, watch Chris Scully's full video here.

Start Your Succession Plan Today!

In his latest video, Chris Scully of Action Management Pros, LLC, talks about the intricacies of business succession for contractors. From over 20 years of experience, Chris offers insights on optimizing operations and ensuring long-term success. Don't just navigate the challenges; master them. Watch the video and schedule a consultation to thrive in your business journey!

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