How to build a business that leaves a legacy
Many entrepreneurs start a business with short-term goals in mind. For instance, they might focus on sourcing the next round of funding or reducing operational costs. While these are all crucial for commercial growth, building a legacy business goes beyond quick wins. It’s about making strategic decisions that will promote long-term expansion, allowing the company to thrive once you’ve stepped down.
In this post, the UK’s leading company formation agent, Rapid Formations, will guide you through the key considerations for setting a strong foundation and building a business that leaves a legacy.
Focus on your vision
To build a business that leaves a lasting legacy, you should keep your vision at the forefront of every decision. Whether it’s sustainability, innovation, or passing the business down the family tree, identify what inspired you to become an entrepreneur and use that to lead your commercial decisions.
Whatever your goal, keep reminding yourself why you started a business, to stay aligned with your purpose, ensure consistency, and keep your company on track to achieving its targets.
Invest in people
Your team and company culture are integral to the legacy you leave behind. That’s why it’s essential to invest time and effort into hiring the right people who share your values, perspectives, and passion to build a strong, thriving business.
When recruiting, pay attention not just to candidates’ experience and qualifications but also to their personal interests, soft skills, and future aspirations. This will help you find like-minded, loyal individuals who will develop the legacy you envision for your business.
Beyond the recruitment stage, focus on employee growth and development. It’s crucial to support your teams and provide skill-building opportunities that will equip and motivate staff to continue the business’s legacy in the future.
Build a succession plan
To build a legacy business, you’ll need a solid succession plan. This will help ensure that you have the right people to take over the company one day.
While it might not be your top priority in the early stages of entrepreneurship, it’s best to start thinking about who you might want to take over the business as soon as possible. Remember to give yourself options by thinking beyond family; perhaps a close friend or trusted colleague could make a great beneficiary.
Once you’ve narrowed them down, it’s a good idea to let your successor(s) know that you’d like them to continue your legacy one day. This gives them a chance to digest the information, ask any questions they might have, and prepare rather than it being sprung up on them.
There’s no guarantee that they’ll accept, so telling them sooner rather than later will give you plenty of time to make a backup plan.
Give back to your community
People are more likely to remember you by your actions rather than your words. That’s why you should focus on community engagement and demonstrate that your business is a force for good, to leave a positive and lasting legacy.
Find charitable causes that align with your values and mission, and encourage your teams to participate. For example, they can make monetary donations, take part in volunteering days, or host fundraising events.
Giving back fosters goodwill and inspires loyalty, ensuring that your legacy is built on more than just profits.
Focus on sustainable growth
The key to lasting success is sustainable growth. To achieve this, you should be prepared to think beyond immediate profits.
Instead, to build a legacy, you’ll need to future-proof your business with strategic, long-term planning. This approach will help build commercial resilience for generations to come. Here are some of the key aspects to focus on:
- Innovation: Technologies and markets are constantly evolving. Continuous innovation will ensure your business keeps up with the times and remains relevant and resilient. Innovation can involve integrating new technologies, expanding into new regions, improving processes, or launching innovative products. Strategic planning and innovation will allow you to adapt to emerging trends and market shifts and open up new revenue streams, ensuring your business remains competitive and future-proof.
- Partnerships: Forming strategic partnerships plays a crucial role in building a legacy business. Whether you’re planning a product collaboration or seeking professional business support, it’s essential to consider the long-term impact of those partnerships. For instance, partnering with a telephone answering service would enhance customer experience and satisfaction, leading to improved brand reputation and stronger customer relationships.
- Customer feedback: Don’t be afraid to ask your audience for feedback. This is key to identifying how your business can improve and build a strong legacy. You should actively encourage customer feedback through various contact channels, respond to reviews, and implement practical changes that help strengthen your company’s future.
Incorporate your business
If you’re starting a business specifically to build a legacy, consider incorporating as a limited company. One of the many benefits of incorporation is perpetual succession.
Unlike a sole trader business, a limited company is a separate legal entity. This means that the company continues to exist indefinitely unless formally dissolved, and its owners can change over time. Meanwhile, there is no distinction between a sole trader and their business, making it difficult to transfer ownership.
In summary
If you’re starting a business and want to build a legacy for future generations, remember to focus on your vision, values, and inspirations throughout your time as the founder. You should also invest resources in shaping a company culture that will carry on your legacy, create a robust succession plan, give back to your community, focus on sustainable growth, and incorporate as a limited company to allow for perpetual succession.
Do you have a great idea for a legacy business? Make it a reality with Rapid Formations. Simply choose your ideal company formation package and complete a quick and simple online registration form to start building your legacy.
