A succession plan is created to make sure your business can run without you.

Succession plans are put into place in anticipation of a voluntarily or involuntary change in leadership. Succession plans can be put into action to convey leadership in the following situations:

• Retirement
• Sale of a business
• Death or disability

The three steps to putting a basic succession plan into place are choosing a successor, training your successor and documenting your job.

Choosing a Successor
Start simply by keeping your eyes open for full-time employees that may be potential successors. Ideally, you’ll find that someone within your chain of command will be a good fit.

If you are very small, you may have to extend your search to family members, customers, vendors and other interested parties. For example, a local craft store owner in my town recently sold her business to a young woman that once worked for her during the summers as a student. Once you have identified someone, broach the subject of succession to gauge the potential candidate’s interest and fit.

Training Your Successor
After you've selected your heir apparent, begin to bring her up to speed. Give her and other key members of your team access to the inner workings of your business. What they learn at your side will be useful if you ever need to implement your succession plan, and will help you identify information that needs to be documented.

Write It All Down
In your absence it will be necessary for anyone that wears your shoes (even temporarily) to have a map or blueprint to follow. Create an operations manual that is kept in a safe place and includes big and small details needed for day-to-day business. Don’t forget to include passwords, important schedules, bank account information, time tables, and contacts, etc. You should also meticulously maintain records that others can understand in your absence.

The success of your business lies not only with you but also in your ability to plan for how it will run at least as well without you. Developing a leadership succession plan isn't easy, but it is a key component of any long-range business plan––even for companies with just a handful of employees.

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