You worked hard for years operating your Florida auto dealership, and now, you are thinking about handing over the reins to someone else. Creating a business succession plan helps ensure that the transition is a smooth and seamless one. However, many people creating their own business succession plans make similar mistakes along the way.
Per Entrepreneur, here are three common mistakes made by the owners of auto dealerships and other businesses when it comes to succession planning.
Mistake 1 – Putting off succession planning
Grooming someone else to take over your business takes time, and so do the other aspects of transferring ownership to someone else. Some dealership owners put off succession planning, either because they fear they do not have time or they fear stepping away from the business and taking the next big step in life.
Mistake 2 – Choosing the wrong successor
You may want to leave your dealership to someone in your family but you should only do so if this individual is truly the right fit for the job. When choosing a successor for your dealership, there are implications that come with naming a successor inside or outside the family. Make sure you understand what they are before making a decision either way.
Mistake 3 – Not leaving enough time to mentor a successor
As important as naming the right dealership successor is giving the successor you choose enough time to learn the ropes. Your dealership is your legacy, so you do not want to leave anything up to chance. If the successor you choose fails to live up to expectation, starting early also allows you an opportunity to choose someone else.
Many auto dealership owners are now inching toward retirement. If you are among them, know that avoiding these common errors may lead to a smoother road ahead.