Mentorship is one of the most effective ways of implementing a successful succession plan as it allows for seamless transition from one leader to another. A business owner can mentor internal employees or external buyers that will eventually take over the business – regardless, all will gain these same three benefits.
1. Mentoring keeps knowledge within the organization
Some industries (such as florists) require a large amount of important knowledge that only seasoned experts would have. Providing a mentorship period to your successor removes the likelihood for expensive errors and allows the business to continue thriving seamlessly. A seamless transition gives your business an advantage as your knowledge is still being used, whether you are running the company or not.
2. Mentoring provides confidence for the mentee
Having access to a mentor can help new business owners hone soft skills like managing employees, negotiating well, and maintaining a work/life balance. A mentee also has the opportunity to solidify their theoretical knowledge in real-world situations with the support of a mentor. Mentors can provide guidance and support in decision making, allowing mentees the confidence to potentially take greater risks sooner in order to build up the business.
3. Mentoring is a good way to transition into retirement
Many business owners leave their business for retirement, but after spending decades involved in an industry, a clean cut can be stressful. Mentorship is the perfect way to transition out of the business as you are still able to use your skills and knowledge, but with less pressure and demand on you. Retirement also means greater free time and a more flexible schedule, so any time spent with a mentee can be more focused on helping them. Retired mentors can also use their mentorship period to keep up with networking and learning about new developments in their industry, providing them with a personal sense of usefulness and satisfaction.