How to Create a Succession Plan That Protects Your Legacy
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If you've built a business from the ground up, it may be difficult to imagine a day when you're no longer leading it. But sooner or later, every founder must face a humbling truth: the time will come to step aside and turn it all over to someone else. Whether you're passing it on to family, a trusted executive, or a new owner, the process of succession planning is not just important, it's essential to your legacy.
I've made succession planning one of my top priorities for the last 30 years. I've learned that the only way you will have a good transfer is if there are trained people in place with a strong plan. It's no surprise, as I have three sons and three nephews who have worked in our company for many years. They're all earning their way at United Franchise Group. When I leave, I expect to have a peaceful transfer of power to them.
Here's what I've learned about the succession process and how you can manage yours when the time comes.
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Start with the right mindset
The first and perhaps hardest step is accepting that your successor will bring their own ideas to the table. That's a good thing.
Yes, your ideas built the business. Your strategies and values laid the foundation. But the next leader will inevitably see things differently, and they should. It's not about replacing your vision, but building on it. You must be okay with the mantra "New leader, new vision." It doesn't mean everything has to change overnight; it means you can't run your company from the grave. You have to let go at some point.
Related: I Walked Away From a Corporate Career to Start My Own Small Business — Here's Why You Should Do the Same
Identify your successor early
The sooner you can identify the person or team who will take over, the better. If your chosen successor is already part of your senior executive team, they should know that you're preparing to pass them the baton.
In larger organizations, one individual might not be enough to shoulder the entire leadership load. In that case, consider splitting the top role into two, such as a president and a CEO. Dividing responsibilities can create a more manageable transition and allow successors to play to their strengths.
Above all, look for someone who listens more than they talk. A great leader is curious, asks thoughtful questions and listens to the answers. They should understand and respect the company's history but also be capable of rallying the team around a new, compelling vision.
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Train them — and the team — right
Once you've identified your successor, the real work begins: training. Start early. Don't wait until the last year or quarter of your career to begin preparing your replacement. Ideally, you'll have at least six months to a year to bring them along, but more time is always better.
Training doesn't stop with the new CEO. You must also invest in your senior executive team and anyone else with decision-making power. The goal isn't to preserve the company as it is at handoff, but to ensure that the new leadership understands how and why things have worked. That knowledge gives them a strong starting point from which to innovate.
Show them the systems, values and the people who drive your business. Give them context for your decisions and invite them to challenge your assumptions. Think of it as preparing your company to thrive without you. And remember: Be patient. If more time is needed for a smooth transition, take it. A staggered transfer of responsibilities can reduce friction and give the team time to adjust.
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Prepare for the unexpected
Even the best-laid succession plans can hit unexpected bumps. Your chosen successor might leave the company due to a health issue, a change in personal circumstances, or simply a desire to do something different. Key team members may move on. Market conditions might change.
That's why flexibility must be built into your succession plan. It should be a living document, not a rigid directive. Revisit it regularly. Be honest with yourself and your leadership team about what's working and what isn't. Contingency planning is critical for long-term success.
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Writing your next chapter
Once you pass the business to new leadership, there's one last transition: yours, into retirement. Just as your business will continue without you, you will continue without your business.
This time in your life doesn't have to follow the stereotype and be filled with golf. There are many other things that can make your next chapter rewarding: traveling, checking items off your bucket list, volunteering at your church, or favorite charity. Becoming a mentor to young executives can also keep you involved in the industry you love and enable you to give something back to it.
I haven't retired yet, but when I do, I'll know I'm leaving my company in capable hands — and I can't wait to see where the new leaders take it.
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