Here’s an important question: If you don’t plan and lead the transition of your business who will?
We’ve been beating this drum for several years and sometimes it feels futile. The statistics and the reality of your image in the mirror should inform you that imminent change is required, but too many business owners continue to act as if they will live forever. Of course, we know this isn’t true, however, our brains have an amazing ability to rationalize. We’ve spoken to owners in their seventies who think it’s too early to plan their retirement and the transition of their business.
A while back, one of our team members spoke on the topic of succession planning and transition to an association of business owners. 75% of conference attendees had grey hair, but only a small number participated in this discussion. What happened to the rest?
It Can Be a Lot of Work
It’s not a surprise. It’s not easy and it’s an uncomfortable topic. It is also a lot of work at a time when you are already very busy. Opening that can of worms requires you to look honestly and frankly at a future without your business. It means you need to ask some tough questions. Questions like:
- Are your kids or employees up to the challenge of running the business?
- Would it be better selling to someone else?
- How do you broach the subject with your management team?
- How do you tell your customers?
- What will you do with yourself? Often, your business is your life.
- How do you make the business look attractive to a buyer?
- What’s it worth? Will that be enough to enable you to retire?
- Would you be better off just running it a few more years and taking more cash out of the business? Then you can just shut it down. But then what happens to your employees?
So, you understand. It’s not easy, and it can be painful. It’s a lot of work and you don’t have much extra time on your hands. But if you don’t do it, if you don’t take the initiative and lead the charge, who the heck do you think will? Are you prepared for the negative consequences of being put in a position in which you have no choice? If you consider yourself to be a leader, then lead. It is your responsibility to lead your transition. And once you do, one step at a time, you’ll find it isn’t that tough and the payoff will be worth it.
Contact one of our business coaches who can help you make the changes easier.