There will come a time when you will no longer be running your company. Whether you decide to sell it, retire or even just take time off, you'll have to have a system in place to ensure the business can manage without you. While you may want your employees to rely on you for everything, you shouldn't be the power source of your company. To prepare it in the event of your departure, you should do the following:
1. Plan
Even from the beginning, you should have a strategy in place for when you decide to step away from your business. You shouldn't just be considering your current situation. You should be thinking about where you want your company to be in the future, Brenton Hayden, founder of Renters Warehouse, explained in Entrepreneur. Then consider what can help you get there. Are there specific people? Maybe certain deals that can promote your business's evolution? Whatever it is, set a deadline and work them into your plan.
2. Estimate its worth
If your company depends on you, it's not going to be worth much when you leave. Look into getting some financial investment advice from a good business broker to help you set your goals, Doug and Polly White, owners of Whitehouse Partners Inc., told Entrepreneur. You should take revenue, profitability and expenses into consideration, as well as your future plans.
3. Consider your role
Whether you're putting your company on the market or choosing a successor, you'll need to take account of what it is that you do. If you're the main person behind the scenes, potential buyers are going to be looking at how your loss will impact the business, the Washington Post explained. Before you make any decisions, you should consider what you do in the company and then start teaching some of your employees how to perform specific tasks. Just because you do it all, doesn't mean the next person should. You may be able to find one person or you might have to divide your role between several people, according to Hayden.
4. Choose a successor
If you've already eliminated selling the business, you'll have to choose someone to run it in your place. You're not going to have one person immediately available that can do everything you do, so you'll have to train him or her. The best way to do this is to start long before you're ready to leave, Hayden suggested. Once you've taught him or her the basics, you should step back and observe. Let your successor take control and watch how he or she handles things. Ensure that the person knows what he or she is doing so that once you've retired you won't have anything to worry about.
It can be a stressful time when you're selling your business or retiring. As long as you have a plan in place and prepare your team, your business will be in safe hands.