Succession Planning – Building Value

October 16, 2009 | Link This | Email this | Comments (0)

A few weeks ago I met a prospective client who happened to be in business with three of their siblings. Two of the family members are in their mid forties and two are in their mid fifties. They have done a fantastic job of giving birth to and developing a successful business over the past twenty years. However, they have reached a point in their business life where they are struggling with what to do next. After spending approximately two hours with this family, it became clear to me that they have been working in opposite directions. Each family member was doing what they thought was important for the business, not necessarily what is in the long term best interest of the company. Thus, one of my conclusions was, “your vision is in need of an alignment.”

Just as...Read More

May 15, 2009 | Link This | Email this | Comments (0)

Please click here to read my previous blogs, Recipe For Success and Is It All About The Money?.

Do you find that you consistently hang on to employees too long when, in your heart, you really know they would be better off somewhere else? You are not alone. Countless businesses have suffered and many continue to suffer out of fear.

For many, the fear stems from their belief they will not be able to find a better replacement and, therefore, feel it is best to settle for the current employee. For whatever reason, some business owners would rather “die from a thousand cuts” by putting up with lackluster performance and cultural in...Read More

April 17, 2009 | Link This | Email this | Comments (0)

Please click here to read my previous blogs titled "Succession Fallacies: "I have it all done," and "Succession Fallacies: "I am too young to begin succession planning."

Most parents contend they love all their children equally, so naturally they want to treat them equally (which I can appreciate as a parent of three boys). However, there is a distinction that should be made regarding an equal estate distribution and equal compensation. Let’s face it, every person is blessed with a unique personality, unique talents and unique skill sets. Furthermore, ...Read More

February 20, 2009 | Link This | Email this | Comments (0)

My previous blogs, “Business is Tough, But Life is Good” and “Business is Tough, What an Opportunity” focused on the need for positive leadership and the opportunity this economy is presenting to provide invaluable experience for your successors. This posting provides a twist on the topic of successor development focusing on the child/business owner dynamic.

“I am tired of being treated like a child! If this is the way it is going to be, I would rather work somewhere else!” These are the words uttered by a frustrated client during a visit a few years ago. These sentiments are undoubtedl...Read More

January 23, 2009 | Link This | Email this | Comments (2)

This is likely one of the most difficult decisions you will have to make as a business owner. It is especially difficult for those of you who treat your business like a first born child. When you started the business on a wing and a prayer with very little capital some thirty years ago, you had no choice but to serve in multiple roles (CEO, HR Director, Accounts Payable, Sales Manager, Salesman, etc.). You worked long hours and gradually scaled back to working half days (12 hours/day). You also had many sleepless nights wondering how you were going to make payroll.

Today you are experiencing the gratification of building a successful business, but you are also beginning to think about when would be the best time to step aside and relinquish the reigns so your successor could assume some of your responsibilities. I have often been asked this question by business owners ac...Read More