Succession is one of the most important decisions you will make for your staffing business. There is no better time to start planning than the present – the sooner you have a strategy in place, the smoother the transition will be.
Unsure where to start? Follow our tips to ensure succession success.
1. Have a business plan and update it regularly. This document provides an outlook three to five years ahead and a framework for your company goals. It is not just for new businesses or those seeking funding; a business plan shows buyers you are organized and dedicated and keeps stakeholders up to date on your plans. Visit www.sba.gov for help creating a business plan.
2. Decide on your role. How long would you like to remain involved in the company? Will you stay on for a time in an advisory capacity or be available for advice? Determining retirement plans such as recreation, travel or other work opportunities first can help you determine how involved you would like to be in the company.
3. Seek advice. You don’t have to go it alone. Consult with stakeholders and key management members, or hire an outside consultant to help guide you through the process. In addition, talk to your peers in the staffing industry to see how they’ve handled succession.
4. Determine the nature of your transition. If you’re considering family succession, ensure that your successor has both knowledge of the staffing industry and a desire to take over. You could also sell to your management team, create an employee stock ownership program or seek an external buyer.
5. Identify key positions and start grooming people for these roles as early as possible. Selecting these employees early and providing the appropriate training ensures an effortless transition. And you don’t need to look only internally; conducting an external search is also an excellent way to choose a successor.
6. Conduct an audit. This can begin internally but should include an external look, as well. Address concerns such as systems updates or redundant processes prior to putting your business up for sale to attract the most serious buyers and best price – and ensure your firm’s continued success.