Common Succession Planning Mistakes
Amar Pandit
A respected entrepreneur with 25+ years of Experience, Amar Pandit is the Founder of several companies that are making a Happy difference in the lives of people. He is currently the Founder of Happyness Factory, a world-class online investment & goal-based financial planning platform through which he aims to help every Indian family save and invest wisely. He is very passionate about spreading financial literacy and is the author of 4 bestselling books (+ 2 more to release in 2020), 8 Sketch Books, Board Game and 700 + columns.
January 24, 2025 | 2 Minute Read
Choosing a successor is one of the most important decisions you’ll ever make. But it’s not just about picking someone who knows the business. It’s about finding someone with leadership, vision, and the ability to build relationships. They must align with your firm’s values and be committed to its future.”
“You need to ask: Does this person have the skills to lead? Can they inspire a team? Will they grow the firm and uphold your legacy? These are the qualities that define an ideal successor.
Even though this is one of the most critical decisions, it’s often riddled with mistakes that can hurt the value of your practice and your legacy.
One common mistake is selecting the first available person or a family member without assessing their capability. Just because someone is close to you doesn’t mean they are equipped to lead. Leadership requires vision, resilience, and a deep understanding of the business. Without these qualities, your successor may struggle to sustain, let alone grow, your practice.
Another pitfall is choosing only one successor. A single successor puts all the responsibility on one person, which can be risky. This is like creating another mini YOU. Instead, build a team. A team brings diverse skills, shared responsibilities, and resilience during transitions. A collective effort ensures the practice thrives and grows, even as leadership changes.True succession is about building a foundation that outlives any one individual, including you.
The biggest misconception? Treating equity as a gift. Equity is not a token of appreciation. It’s a reward for commitment, contribution, and value creation. When you hand over equity to someone who hasn’t earned it, you undermine its worth. Equity should go to those who have proven their ability to grow the business and uphold its values.
Succession planning isn’t about convenience or sentiment. It’s about making deliberate choices that protect your practice, clients, and legacy.
Pause and reflect: Are you making these mistakes? If yes, it’s time to course-correct. Start thinking long-term. Evaluate your successors objectively. Build a team that can carry your vision forward. And most importantly, treat equity as a responsibility, not a gift.
Your practice deserves more than a rushed decision. It deserves a plan that secures its future and honors the work you’ve put into building it.
Similar Post
Nano Learning
Impatience and Patience
James Clear (Author of Atomic Habits) wrote this wonderful idea.
“Mastery requires both impatience and patience.
The impatience to have a bias towards action, to not waste ti ....
Read More
3 December, 2021 | 2 Minute Read
Nano Learning
Pay Now, Get Later
Shane Parrish wrote, “The universe does not offer financing.
This is hard to accept because modern life trains us to expect the opposite. We are addicted to buy now, pay later. Y ....
Read More
2 January, 2026 | 2 Minute Read
Nano Learning
The Dangal Lesson
The first scene of the movie Dangal has a gentleman challenging the character played by Aamir Khan for a wrestling match in the office.
10 September, 2021 | 2 Minute Read
Nano Learning
The Weakest Link
What do you think is the weakest link in your practice or business?
Generally, there are many in every firm, but there is one that most people do not even realize exists.
Can ....
Read More
18 June, 2021 | 2 Minute Read
Nano Learning
The Hypocrisy Trap
I recently met Ram, a mutual fund distributor who was frustrated with his client’s behavior. “My client wants to get investment guidance from his uncle,” he complained. “He ....
Read More
30 August, 2024 | 2 Minute Read



- 0
- 0
0 Comments