Guide to Succession Planning

Evaluate your responsibilities

Create a job description by listing all your responsibilities. Experts advise that you make a list of requests that suppliers, clients and employees ask of you. Then break it down further by listing the skills, attitudes and knowledge that you use to meet these demands. This is your blueprint that you can use to evaluate staff members. Also, list the number of additional staff positions that would need to be filled in your absence.

I recommend: Review examples of results-oriented job descriptions and a sample CEO job description.

Make the plan

The first step is facing the ego-busting reality that, one day, you'll be replaced. Be committed to creating a transition plan so that you can communicate your needs to others. Discuss these ideas with a mate and company management clearly and often.

I recommend: Review a sample succession planning policy at Workforce Management. For family business succession planning, the Family Business Consulting Group offers online surveys and advice to help refine a plan. Or create your plan on Succession Wizard software.

Choose potential successors

Consider more than one successor, especially ones who can be easily promoted within six months time. And then spend time developing them: allotting more decision power and letting go of more control of the company. Fold these responsibilities into twice-yearly job reviews that include sharpening successor skills or transferring information.

I recommend: SuccessFactors.com offers succession management software and Webinars aimed at developing next-generation talent. For additional pointers on finding the best successor, go to Business Owner's Toolkit or Entrepreneur.com.

Lay the financial and legal groundwork

Consider early on the terms and funding for a buyout.

I recommend: Scan this checklist for buy-sell agreements for a business. The SBA has some tips on a timeline for transferring ownership.