When you’ve started a business from scratch, picturing the day you’ll no longer be in charge can be challenging. Yet, eventually, every entrepreneur must confront the inevitable reality: there will come a time to step back and hand over the reins. Whether you pass the torch to a family member, a trusted manager, or a new buyer, succession planning is crucial for preserving your legacy.

For the past 30 years, succession planning has been among my foremost concerns. I’ve realized that a smooth transition requires having prepared individuals and a robust plan. This rings true as I have three sons and three nephews who have been contributing to our business for years. They are proving their worth at United Franchise Group. When I exit, I anticipate a seamless power transition to them.

Here’s what I’ve learned about the succession process and how you can manage yours when the time comes.

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.

Certainly, it was your vision that built the company, and your strategies and values set the groundwork. However, the successor is likely to have a different perspective, and that’s necessary. The goal is not to replace your vision but to expand upon it. Embracing the idea of “New leader, new vision” is crucial. This doesn’t imply immediate, sweeping changes; it acknowledges that you cannot manage the company indefinitely. You have to let go eventually.

Identify your successor early

It’s beneficial to identify your successor or team as early as possible. If they’re already part of your executive team, they should be aware that you are grooming them to take over.

In larger companies, a single person might not be able to handle the leadership duties alone. If this is the case, consider dividing the responsibilities between roles, such as a president and a CEO. This approach can ease the transition and let successors focus on their strengths.

The most important quality to seek is someone who listens more than they speak. An exceptional leader is inquisitive, poses thoughtful questions, and pays attention to the responses. They must appreciate the company’s past but also have the ability to unite the team around a fresh, inspiring vision.

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.

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.

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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