The new financial year often brings a wave of reflection for business leaders. You are probably focused on whether you achieved the goals you set for the year? More importantly, what happened to your longer-term retirement? What if your children are not interested in taking over and you don’t have the right successors?
A businessman recently said to me that he was a victim of his own success. He said that he had grown his business to the point where everything relied upon him personally and he lacked the management team and infrastructure to allow him to step out. He said it is very enticing to keep costs down and pay yourself a lot more by NOT investing in a successor or a scalable structure but he is now facing the consequences. We see this a lot with baby boomers who want to sell their businesses and retire.
Without a clear succession plan, your exit and the future of your business could be at risk. A well-prepared successor and a structured scalable business model will ensure a smoother handover and continued success for your business post your exit.
Benefits of a Smooth Succession:
- Peace of Mind for You: Knowing your company is in capable hands allows you to confidently pursue your next chapter. Imagine the freedom of stepping away without the worry of leaving your legacy behind in disarray.
- Stability for Your Employees: A clear succession plan minimises disruption and fosters a sense of security. Your employees can focus on their roles, knowing the future leadership is in place.
- Continued Growth for the Company: A well-prepared and embedded succession plan ensures a more seamless transition and minimises the risk of a slump. The company can continue to operate without missing a beat.
If the business is solely reliant upon you, then what are you selling to a potential buyer?
Don’t Wait Until It Is Too Late
Executing an effective succession plan takes time and effort. Don’t wait until you’re ready to retire to start thinking about it. Start now by:
- Identifying Potential Successors: Look within your company for high-potential leaders. If no one is identified, then you will need to bring in external experts like Executive Consulting Group to support you.
- Invest in Development: Provide development opportunities like coaching and mentoring programs or leadership training to prepare your chosen successor.
- Formalise the Plan: Document your succession strategy, including the timeline, new company structure, systems and processes, and responsibilities for the handover.
A well-defined succession plan is an investment in the future of your business. You may have to invest more now, but you will create a business that doesn’t rely upon you as the key person.
Call Excutive Consulteing Group if you would like to discuss your situation.
