How to get started finding a successor — and why you shouldn’t wait
Now that you’re the owner of a successful manufacturing company, have you considered who will succeed you? Whether or not you wish to think about it, you’re not bulletproof. Eventually you’ll be ready to hand over the reins of your company to someone else.
If you haven’t introduced your children to the finer points of manufacturing — or if they aren’t interested — you’d better know who’ll be waiting in the wings when it’s time for you to step down.
So, first, consider who wants the job of running your business. If it isn’t your children, or if they aren’t qualified, look to the stars on your staff. Keep in mind that the obvious candidate may not always be the best candidate. For example, a star salesperson may be forcing your shop into overdrive to keep up with the demand he’s creating. But if he doesn’t share your vision and values, have business acumen and people skills, and know your business from the ground up, he likely doesn’t have what it takes to lead the company.
Second, consider what it will take to grow and change the company as markets change after you’re gone. The reality is that the manufacturing business landscape may be entirely different in 10 or 20 years. Whoever is running your company must be able to weather the changes.
Once you’ve determined who the candidates are and what skills and interests will be of value, select the person who has (or can best develop) those skills and interests. Be sensitive to the feelings of those you don’t choose, particularly if one is widely viewed as the logical successor. But don’t compromise your decision.
For more information about our services to inventory based businesses,
Contact: Mark Walker, Partner, Director of Inventory Based Businesses Practice at 817.882.7724.
The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.