Four Important Yet Easy Tips for Creating a Business Succession Plan
As a business owner, not having a “plan” can lead you to some serious pitfalls. What happens when you can’t run your business anymore? Do you have a succession plan in place? Do you know how to create one? If the last three questions sent you into a panic, find some relief that you’re not alone. Many host agencies are realizing that despite our workforce aging, most travel agency owners don’t have a succession plan in place. According to a Hot Travel Jobs survey, the average travel advisor is 55. The U.S. Bureau of Labor Statistics simply says “a large portion of travel [advisors] are reaching retirement”. Ultimately, this leaves us, you and the industry in a very vulnerable place.
Where do you go from here? Your natural next step is to craft your own succession plan. It’s in your agency’s best interest to be proactive, rather than reactive. Below are some tips and ideas to consider when creating your plan. By adopting one (or a few of these), your business will already be in much better shape to face the future.
But First, What’s a Succession Plan?
For those who don’t know, a succession plan is a future-focused plan that identifies a solution for a business when personnel changes occur. This would be anything like retirement, getting terminated, or taking a leave of absence. With a succession plan in place, it allows your business to proceed as normal despite any changes.
Tip 1: Find Your Backup
Take some time to think of someone who can take over for you.You should look for a person(s) that has the necessary skills needed to be in charge. Once you’ve selected your ideal candidate, take the opportunity to mentor them, showing them the ins and outs of running your business.
You can also leave your business to another experienced advisor. They won’t really need mentoring however, over time, begin to introduce your current clients to them. This will make the future transition unbelievably smooth.
We recommended finding at least two individuals you think are suitable to take over your agency. It’s proactive to have options.
Tip 2: Prepare a Warm Handoff
Unless the worst happens, your clients should know your plans to eventually leave the business. They should also get the opportunity to build a relationship with your successor. Consider this prep work for a warm handoff.
Also consider how hard you’ve worked to solidify your relationship and earn the trust of your clients. Your successor should get the same chance.
Tip 3: Provide Experience & Do a Trial Run
Practice makes perfect, right? In that case, identify opportunities where your back-up can practice running your agency without you. For example, going on vacation gives you and your successor the perfect chance at trial run. They can step in, assume most responsibilities, and form relationships with existing clientele.Your successor will gain valuable experience, and you get to destress without (too many) interruptions.
Tip 4: Have a Plan B
If finding/mentoring a suitable successor isn’t reasonable for you, don’t worry. There’s still Plan B - selling your agency. Doctors, lawyers, financial advisors, and various other professionals plan on selling their practice or book of business as part of their succession plan. Occasionally, they work alongside the buyer to make it an easy transition but sometimes, it’s an outright sale.
At Travel Planners International (TPI), we’re currently looking into facilitating conversations between retiring travel advisors with business brokers.
Bonus Tip: Joining the Right Host Agency
Host Agencies are not one size fits all. At TPI, we’re ready to help you capitalize your passion and high energy to make all your entrepreneurial dreams come true. For us, it’s about looking forward and then giving you the tools to being successful. No matter what stage you’re in, we can help. For more information, click here to visit our website.
A succession plan is crucial for your business! Deciding to leave the industry affects more than just you. The better you prepare now, the less disruptions there’ll be in the future. Open a Word doc right now and start drafting your own succession plan. If you need to work on it over a few days or weeks, that’s alright too. You just need to have something in place.