Build a business that lasts
“Plan your exit early, implement carefully so you can successfully step aside.”
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Build a business that lasts
I was chatting on the weekend to Mike, CEO and founder of a successful events and logistics company. As he is needing to retire for health reasons, his concern and a source of great stress is the need to find the right senior leadership to take over the business. He, as so many others in his position, is struggling to transition from his lifelong very hands-on leadership style to the more hands-off style that’s now needed.
As only 7 out of every 100 founders manage to successfully transition the business beyond their leadership, navigating this exit phase is not guaranteed at all and it requires careful attention and forward planning. The rule of thumb for succession planning like this is a 3-5 year time horizon.
But the truth is that few founders think that far ahead, or plan for the unexpected. Most of the small businesses leaders that I know are just happy to run their business. They love the cut and thrust of being at the centre of the organisation and playing the role of Mr or Ms Fix-it. But as the business grows its essential to learn how to step aside and make space for others to step in, and then to manage this new reality.
One of the primary indicators of business value is if it will survive once the founder exits. This is the task that Mike is facing and currently the answer is frankly no. Without Mike the business will flounder.
The advice that I gave will help him to transition fairly quickly and remedy his situation, as long as he starts now, but the conversation was a reminder to all small business owners that if the dream is to exit or sell the business at any stage then that planning needs to start early, because no matter who you are, and whether you plan to work until you retire, the simple fact is that you can’t run the business forever.
If you are hoping to exit your business at any stage, be sure to reach out for advice so that you can be one of the successful 7% that can look back and proudly say “I successfully built a thriving business and it’s now growing without me!” That is something to look forward to.
