By Kevin L. Baker, MBA
Why Think About Succession Planning?
Business succession planning and then actually carrying out your plans successfully will be the capstone deal of your career as a business owner. You have built your business, now the plans and decisions you make determine whether a lifetime of work will maximize its economic as well as emotional and psychological value as you exit “your baby.”
Succession planning is a process for identifying and developing new leaders who can replace old leaders when they leave, retire or die. That definition sounds sterile. However, it is the simple truth plainly stated–one day you will leave your business, want to retire, or die. Is your business ready for that?
Are You Ready To Exit Your Business?
Most owners have no experience working through a business succession. As you begin research and conversations with professionals who do, you will learn new vocabulary, tax rules, and think about your business differently than the normal working in, and working on your business perspective you have always had.
In addition, most advisors you will work with–attorneys, accountants, business brokers, bankers and the like– though well intended and technically competent, are often not trained to guide the owner through the turbulent technical, emotional, relational, and personal challenges that are intricately woven into business successions. These “soft skills” are often provided by the helping professions, family, and friends who may not understand business. So you, the owner, are left trying to merge advice coming at you from all directions.
The Risks of Not Succession Planning
This approach to handling one of the most important transitions of a business owner’s life frequently leads to succession plans that are never completed. Too many owners and their families experience unfulfilled expectations with professional advisors, misunderstandings, compromised relationships, and decreased business value when they try to hand off their business to family or a new owner.
Business succession requires a proven, clearly defined process as well as guidance from a person who can guide you through the process dealing with the business and human aspects of what you are experiencing.
Why Kevin Baker for Succession Planning?
As a consultant who specializes in assisting business owners launch, grow, and sell their businesses, I also add 23 years of experience as an ordained minister to the business services I provide. In that role, I become a specialist in coaching human beings through life; developing people in personal and family skills; and leading people to growth spiritually, emotionally, and familially.
As a business professional with an MBA, growing up the oldest son in a family business, and 20 plus years of executive experience in small to medium sized family-owned businesses, I also understand the complexities of family businesses, especially when it comes time to decide what to do with the business now that the time has come for you to exit from day to day as it has been.
Keep Coming Back for More on This Subject
This article is the first in a series dealing with how to succession plan properly. It will take time. It will take a lot of hard work and soul searching. Please, do not put it off. If you die without a plan, your family and all your hard work will be put at great risk.
Let’s get to work on planning now so your future will be one of health, wealth, and prosperity instead of regret, heartache, and loss.
Be The Best Version of You By Succession Planning
Kevin Baker is a professional business coach and consultant specializing in Business Sales, Succession and Exit Planning, and general business