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“Succession Planning For Your Business – Better Now Than Later!”

Written by: Glenn Ebersole

Article Overview: Do you, as a business owner, have a succession plan or exit strategy for your business? Do you, as an employee, know if a succession plan or exit strategy exists in your company or organization? This subject is one of the most critical aspects of owning and managing a business, yet it is also one of the most neglected aspects. Many business owners spend years and years building and growing their business, but without giving any thought to an exit strategy. An effective and smooth exit requires very sound planning several years in advance of the actual exit from the business. The exit strategy must be part of your strategic planning process and a specific long-range goal within your strategic action plan. This type of sound planning will prepare the business for new ownership and for the owner’s financial security afterwards.

“Succession Planning For Your Business – Better Now Than Later!”

“Succession Planning For Your Business – Better Now Than Later!”
By J. Glenn Ebersole, Jr., Founder & Chief Executive of J. G. Ebersole Associates and The Renaissance Group ™

Do you, as a business owner, have a succession plan or exit strategy for your business? Do you, as an employee, know if a succession plan or exit strategy exists in your company or organization? This subject is one of the most critical aspects of owning and managing a business, yet it is also one of the most neglected aspects.

Many business owners spend years and years building and growing their business, but without giving any thought to an exit strategy. An effective and smooth exit requires very sound planning several years in advance of the actual exit from the business. The exit strategy must be part of your strategic planning process and a specific long-range goal within your strategic action plan. This type of sound planning will prepare the business for new ownership and for the owner’s financial security afterwards.

A 2004 CIBC Small Business Outlook Poll (conducted by Decima Research), indicated that 39% of small business owners plan to sell their business and 15% plan to have a family member take over. Yet, two-thirds (67%( of the entrepreneurs polled stated that they had not yet broached the subject of who will take over the company. To me that result is very telling and frankly is a motivator for writing this article.

I have observed the pain of some people in business that failed to heed the call to action to do business succession planning. They were forced into an ownership dilemma in some cases and ownership disasters in others. If you want to experience a “pain-free” transition in your business, then it is essential to start NOW to develop and adopt a clear and comprehensive succession plan (years ahead of your exit from the business).

Business succession planning prepares the company and the employees for future needs. It is an ongoing process that plans, administers and assesses employees and trains them to attain higher levels of responsibility as the need arises. The goal is to get the right person in the right position. Succession planning is not just important for today’s owners and employees, but also for customers, suppliers, vendors, future employees, employee families, the community and other stakeholders.

So, let me pause for a moment, and ask if I have your attention yet? Have I precipitated some thoughts in your mind about why you need to begin to work on business succession planning NOW, NOT LATER! Well, just in case you are still not persuaded, please consider that 91% of U.S. businesses are family-owned and one-third of the Fortune 500 are family-owned or family controlled. Yet only 30% of family-run companies succeed into the 2nd generation. Worse yet, only 15% survive into the 3rd generation. The major reason, according to many experts is the lack of an orderly business succession plan.

Hopefully, you will begin doing some homework on business succession planning and are committed to do it NOW, NOT LATER! Please don’t be like many business owners who don’t consider exit strategies until they have one foot out the door. If you make that mistake, you will limit your possibilities, especially if you are anxious to leave the business. The bottom line is that there is no reason you cannot start preparation NOW with planning regardless of the point in life of the business. My most compelling, earnest and honest advice to you is DO IT NOW, NOT LATER!

To learn more about the critical subject of business succession planning and what you can do in your business to assure a smooth transition of ownership, please contact Glenn Ebersole through his web site at www.renaissanceman4u.com or by email at jgecoach@aol.com.

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