GAWDA 2023 – Let’s Talk Succession Planning!

Did you know that between 60-70% of small business owners hope to pass their business on to a family member, but only about 15% actually have a viable plan in place that allows them to do so? Without a succession plan in place, you have no guarantee that your family business will stay in the family.

Why is succession planning important?

With no plan or exit strategy, if a business owner passes away or is no longer able to manage the business on a day-to-day basis, the family or heirs may be forced to sell the company, and potentially at a loss. Or, if someone in the family does decide to take on the business, but there isn’t a clear plan in place, daily operations may flounder and put the company’s long-term survival at risk.

Key factors to consider.

Creating a succession plan can never happen too soon. Just like having a will to protect your family in the case of unforeseen circumstances, having a succession plan in place provides similar protection for your business. Essentially, you’ll want to cover the following basics in your plan:

• Identify the business challenges you anticipate occurring in the next one to five years.
• Name the critical positions needed to maintain business continuity.
• List the critical competencies, skills and knowledge for ensuring your business’ success.
• List your high-potential employees and what competencies they will need to meet your business challenges.
• Have a plan for retaining knowledge after any individuals move on from the company, so they don’t take critical operational knowledge with them and weaken your organization.
• Create a pool of talent who can step into important positions and a plan to support that talent with career development plans.

Revisit your plan regularly.

As your business continues to grow and evolve, and your employee structure changes, you’ll want to update your succession plan to reflect new business challenges and your roster of leadership talent. 

Find out more at the GAWDA Spring Conference!

Though we’ve listed the basics for creating a succession plan, there are a lot of approaches to succession planning. Get more industry-specific tips at the GAWDA Spring Management Conference in Philadelphia this May! Marie Ratermann will moderate a live panel discussion of industry presidents and CEOs sharing their best advice and insights on succession planning in “Legends of the gas and welding industry discuss: The “how,” the ugly, & the beauty of succession planning” – sure to be an entertaining and enlightening discussion!

Want more succession planning tips and advice? Check out these blogs & podcasts:

10 Key Insights for Successful Succession Planning with Wally Brant, Indiana Oxygen

Nurturing a Family Business Through Generations of Passion, Planning and Innovation with Jack Butler, Butler Gas

Flexibility in Succession Planning with Anne Hayes, Indiana Oxygen

The Intersection of Family, Business and Ownership with Abydee Butler Moore, Butler Gas

Navigating the Challenges of Success Planning in Family Businesses with Jay Brant, Indiana Oxygen

Tipping Point Podcast with 5th-generation winemaker Niki Wente on her family’s strategy for succession planning.