Preparing for retirement doesn’t have to be miserable. When the leader of a business retires, it affects the entire organization. A positive succession experience can be good for workplace morale, but in the same way a negative exit of leadership can cause strife and stress throughout the business. While retirement can feel like a personal milestone, business succession impacts all who depend on the business, including employees, their families, and the community.
56% of family business owners are either unhappy with their succession plan or don’t have one at all. Major concerns include the legacy of the business owner and the security of the business. This unhappiness is felt in day-to-day interactions and functions and is present in moments of big decision making. This puts significant pressure on your business, creating hostility and instability.
Finding Joy in Your Plan
Think of your business as a butterfly. You’ve brought it through its caterpillar stage and now it’s maturing as a chrysalis. One day it will emerge a beautiful butterfly, attractive to potential buyers. Your succession plan is the process that gets you there. A strong ownership conversion takes into account not only personal needs but the needs of the organization as well. Identifying and training new talent, establishing a realistic timeline, and acquiring the funds necessary to complete the transition are all steps your exit plan needs to include. When these needs are addressed, your business experiences more peace of mind.
Succession planning is not a one-time event, but a process that unfolds throughout the years. Trying to rush the succession process can lead to confusion and conflict. Without a map to guide your business to its next stage, your business is like a ship lost at sea. We can’t be sure what the future holds, and the unfortunate reality is that unexpected illness, impairment, or death can render organization leaders unable to complete their duties. This is why the best time to start planning is today, otherwise you leave your legacy up to chance.
Business transitions can bring up uncomfortable conversations and difficult decisions, but you can’t rely on luck to get you through it. Having a team of experienced professionals can help bring back joy and peace of mind to your organization.
Ready to start planning? We can get you there. Let’s talk.