Read part 1 here.
I recently offered some advice on keeping focused in your business as we go move further into this new year. I talked about managing costs and the quality of management information.
What’s your management and staff Plan B? What I mean by that is, if Employee X or Partner Y left the business what would you do? What’s your Plan B? This is particularly important for small businesses.
If you’re partners in a business with one other person what will happen if that person gets ill and is unable to work, or passes away? What do you have in place in terms of shareholder or partnership agreements? How are you covered, life insurance-wise? This isn’t necessarily something business partners want to think too much about, but things could get a bit messy if something happens and you don’t have the appropriate structure and contractual details in place. A possible scenario if you’re not covered and your business partner dies, is your partner’s spouse or family selling their share, or wanting to get involved in a business they don’t understand.
You have a solid, reliable team in place then one of your key people, Ms A, leaves – her partner has relocated to another part of the country. Ms A has been with you for eight years and supervises a team of five. Do you look externally to hire? Do you look at one of those team members as a possible replacement? If you are looking internally are any of the possible candidates ready for the step up? If they’re not, why not?
Promoting from within solves many potential problems and can be a big positive. it sends a good message around your business. It saves you money and time and will be a much smoother and time-efficient process than looking externally. The promoted person already knows that part of the business, your expectations and the wider company culture.
So, if you have good people working within a team or in more junior positions in your business look at how you can gradually develop them for the future. Good employees are a great asset. Focus on and work with them over a period of time. Upskill and mentor them so that they’re ready for the next step.