Choose a successor, and start planning today to ensure your real estate company continues to thrive for years to come, Better Homes and Gardens’ President Ginger Wilcox writes.
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Imagine this: You’ve built a thriving real estate business over decades, but without a clear succession plan, all your hard work could be at risk.
The fear of not having a capable successor is a significant concern in our industry, considering the fact that 10,000 baby boomers are turning 65 every day. Who will take over your company when you retire? This looming uncertainty can jeopardize the future of your company, your employees and your legacy.
Succession planning isn’t just a strategic move; it’s a necessity for ensuring business continuity and long-term success.
What is succession planning?
Succession planning is the lifeline that ensures your brokerage not only survives but thrives beyond your tenure. The process identifies and develops the next generation of leadership for the brokerage to ensure an effective leadership transition and continued success for the company.
Throughout the process, which often takes place over several years, broker-owners are involved in grooming, mentoring and positioning their successors to assume the day-to-day leadership and management of the company. This transition allows the broker-owner to be less involved in the company, while still benefiting from the firm’s prosperity. Succession planning also creates a seamless transition that helps ensure business continuity in the marketplace.
How do I identify a successor?
Identifying the right successor is crucial. This person will carry forward your vision and maintain the culture you’ve built. There are several ways to source the next leader of your company. If any of your family members are currently involved in the business, this may be a good place to start.
Similarly, you may have potential candidates who are currently part of your leadership team, such as a COO, a branch manager or a relocation director. A third option is to look outside of your company for candidates. We frequently facilitate mergers and acquisitions that create business synergies and enable a strong succession plan with a seasoned brokerage operator.
In any scenario, it’s important to identify the key skill sets needed to take the organization into the future and evaluate your potential successors to ensure they either have those skills or that there is a plan to build them.
How do I select my successor?
The selection process can be a decision that you make on your own or one in which you involve various stakeholders in your company, such as your senior leadership team, your extended leadership team or even by engaging agents. There are pros and cons to all three.
Unilateral decision
This may streamline the process but could be met with resistance from the company since they weren’t involved in the decision. However, if the path to succession is clear to you and the person you have identified has your full support, it’s possible your team will trust your decision because they trust you.
Involving advisors
Bringing in your kitchen cabinet of advisors can help provide additional perspective from different areas of the company and help identify a candidate that best complements the company and leadership team.
Engaging agents
Engaging your agents in the decision-making process can be effective, but it typically works in very small companies or when involving a select group of agents who are deeply invested in the long-term success of the company.
While a one-for-all, all-for-one approach sounds ideal, it often leads to complications due to an overabundance of input. Focus on getting the buy-in of top agents at the right point in the process to ensure their support and commitment without overwhelming the decision-making process.
At the end of the day, there is no one way to select your successor. However, it’s crucial to be strategic about who you involve. Your family situation, leadership style and company culture will ultimately determine how you go about it.
Above all, be true to yourself, your company and your vision for the future. Additionally, ensure that your chosen successor possesses the key skill sets needed for the future or has a clear plan to develop them.
How do I develop my successor?
Once you have identified your successor, it is essential that they are immersed in building their business acumen, honing management techniques, and engaging in leadership training. Consider implementing a transition program for new operations staff that may take over to get them familiar with the systems and tools or a program to guide up-and-coming leaders. Help participants develop an authentic and effective leadership style while guiding them in future goal planning for themselves as well as their company.
In an industry where the future is uncertain, having a robust succession plan is not just a strategic advantage — it’s essential for the survival and prosperity of your business. Don’t let the fear of not having a capable successor jeopardize your legacy. Start planning today to ensure your company continues to thrive for years to come.
Ginger Wilcox is the President of Better Homes and Gardens Real Estate.