As a business owner, planning for your exit can be a very emotional event. There are feelings of mortality — not only with your health, but also your role as the leader of a business. That may be why many owners wind up avoiding the topic altogether and fail to properly plan for an orderly exit. According to the American Management Association, fewer than 20 percent of organizations are well prepared for the departure of a key individual.
However, businesses that achieve long-term success typically are the ones that do a good job of planning for succession. The companies that effectively plan their leadership transitions can sustain positive momentum when the next generation leader is properly groomed and allowed to rise within the organization.
Here are five succession planning tips to increase your chances for success.