A succession plan provides a level of certainty for everyone involved in the business from family members to suppliers, employees, customers, and stakeholders. Without a plan in place, how can the next generation begin to develop and grow into their future roles as leaders and owners of the business? That is of course if that’s what they want as the next generation might not want to be involved in the management or leadership of the business.
A common misconception is that succession planning only impacts family members when in fact it impacts the business as a whole and that includes non-family employees. The succession plan you create will affect these employees so keeping them in the loop and allowing them to see that whoever steps into leadership, management and owner roles next will be well suited not only for the task but also for the challenges they might face. I’ve found that the best succession plans are years in the making, giving employees the necessary time to prepare for this transition. Keeping employees appraised of the situation can prevent discontent further down the line.