Here you are after years of sweat and sacrifice, you are contemplating retirement a few years ahead, or just would like to cut down on the grind to have more free time for yourself to focus on other long-neglected matters, such as family.
However, business is another child dependent on you. How do you pass on the rein without negatively impacting operations, years of brand recognition, and credibility?
The answer is in your exit strategy, if you have one. Something most of us do not plan for when we start out but realize that eventually we want to enjoy the fruits of our labor as we get older.
Business Succession Planning, the basics:
1- Identify Key Business Functions
2- Create Priorities
3- Engage Competent Management Advisors
4- Write and\or Update the Company Manual
5- Hire Competent Individuals
6- Build A Competent Management Team
7- Mentor and Train Key Personnel
8- Document Key Processes and Institutional Knowledge
9- Segregate Business Functions
10- Delegate, Monitor, And Adjust Accordingly
The following is a quote from Permanent Equity’s Succession Play-Book:
‘’Successful founders are usually successful because they care, and care obsessively. In practice, though, when you're getting ready to sell your business or take on outside investment, you must be able to demonstrate that the business can function and flourish without you. ‘’
“The reality is that if your business is dependent on you, it’s less attractive to investors, harder to transition to new ownership, and unnecessarily chaotic to wrangle if something happens to you.”
Most of us care deeply for our business. We built and nurtured it to become a successful enterprise. However, we need to plan our exit, whether selling part or all, or passing it to the next generation, we need to plan by decreasing dependency on the Founder and ensure operational integrity of the organization.
To learn more about Business Succession & Development contact us at: ljorsr@outlook.com,
Ph: (315) 512-4482 X 1000 - or join the CEO Club and get a free signed copy of Duct-Taped at: https://rivcapitallp.com/shop/ols/products/ceo-club-subscription