Succession planning tips for Ontario businesses
What will happen to your business when you retire? Here are some tips for planning your succession.
Almost 70% of businesses don't survive past the first generation of owners. Sometimes there isn't a next generation family member to take over, in which case, the right fit will have to be found outside of the family. This step can be time-consuming and make or break a company.
Senior management can leave a business at any time- from illness, retirement, or looking for a different opportunity. Having an unfilled, high level position can leave a business vulnerable to risk. That's why it's critical for businesses to invest time into creating a temporary and long-term succession plan.
Succession Plan Tips
- An exiting executive should schedule enough time to properly teach, mentor and train the successor.
- For an external successor hire, use an executive search firm that specializes in headhunting for the right person within a larger talent pool. They can perform the screening and interviews to save time.
- If not promoting internally, the owner should use their network to reach out to candidates they've had personal experience with.
- Determine the top traits and values of the ideal candidate. Shortlisted candidates should be put through rigorous self-assessments and interviews with other key stakeholders in the company.
- Envisioning the business in 5 years time can help an owner find a successor who represents the company's core values and shares the passion and drive to help the company see long-term success.
Filter blog posts by category
5 most recent blog posts
Find the best insurance
When you request an insurance quote, we'll compare dozens of insurance companies to find you the best rates and coverage. Compare quotes now.