Every business owner should start their business succession planning as soon as possible. Ideally this type of plan should be in place from day one, giving them time to train effective managers that will be able to run the business in the owner’s absence.
Business succession planning is a plan that is put in motion by a business owner to ensure that they have someone who can run their business when they aren’t there. This is seen in large corporations where there are directors, managers and supervisors and should be done in businesses of all sizes.
This is one of the biggest mistakes business owners make these days. When they start their businesses they are so invested, spending all their time and energy on building the business into a profitable enterprise, that they forget what will happen should they be unable to work for any reason or if they want to retire.
Having a management team in place means that a business owner can retire without concern, knowing their business is being run to achieve the same goals and with the right ethos in mind, at the same time generating them an income to live on for their retirement years.
What to Consider
While an expensive investment, the first step to business succession planning is to bring in a qualified and knowledgeable manager to run the business in your absence. Many smaller companies choose a loyal and long term employee to step up and assist as assistant manager for a while, learning the ropes on a daily basis.
Over time the employee will understand the business, understand what the owner would do in certain situations and treat the business as their own.
The most important factors to consider is whether the person you are giving the reins to have good problem solving skills, are they an inspirational leader and are they able to manage the business on a daily basis.
Call In the Professionals
For many business owners, business succession planning isn’t the easiest task to complete. While they are exceptional business owners and have managed to turn their start up business into a profitable one, they are unable to put a plan in motion whereby they are no longer the leader.
This is very common where the owner has spent years invested in their business, their family have taken second place and the business has always been their first priority. It’s very difficult to give up the helm and hand over control to someone else.
The problem is that without business succession planning, an owner can become trapped within their own business with no escape. This can lead to financial and health problems along the way.
Many businesses turn to http://ExitMan.co.nz at this point. Peter Vale, the Exit Man, is a business exit management specialist and has helped hundreds of business owners exit their business with the maximum amount of profit in the shortest space of time.
With years of experience, solutions, support and a proven track record, the Exit Man can help any business owner plan their succession strategy and give them the rewards they deserve for their years of investment.