Whether spurred on by the growth of your small business or your own change in priorities, you might realize now is the time to hand over management responsibilities to someone else.
In order to find the right person and hand over the reigns as smoothly as possible, Jeff Cornwall, director of the Center for Entrepreneurship at Belmont University in Nashville, shared the following five steps on his The Entrepreneurial Mind website.
Assess the resume. “Develop a job description -¦ [it] may include all of the things you currently do running your business plus some things you know you should be doing,” he wrote. “Use your contacts to identify possible candidates for the job and use the demands of the job description to assess the resumes of potential candidates.”
Assess the fit. “Once you have identified some qualified candidates, spend time with the strongest candidates to determine if they will fit in the business you have built,” Cornwall wrote.”Do they share your core values? Will they fit in the culture you have built? Do they have a philosophy and style that meshes with the approach you have taken in the business?”
Negotiate terms. “Beyond negotiating pay, you need to agree to a clear plan to transfer equity and control over time,” he wrote. “Make sure that your attorney and accountant have reviewed any equity plan before it is finalized.”
Stick to the plan. “Handing over control should be a gradual process with many checkpoints and opportunities to terminate the transition if it is not working out as hoped for,” Cornwall wrote. “If it is not working out, be ready to go back to step one in the process and start over with a new person.”
Let them take control. “As you begin to hand over control, seasoned employees may still try to come directly to you,” he wrote. “Reinforce the authority you have passed along to your successor and send [the employees] back to him or her.”
To read the complete The Entrepreneurial Mind article, click here.