24 Jan Being Mindful When Approaching Future Business Owners
When someone is in the planning stages of opening or taking over a business, chances are he/she is not giving a lot of thought to the day when it’s time to sell or retire. That seems too much in the distant future, and the focus is likely on the here and now – getting the business up and running and profitable, or continuing the business previously owned by someone else, making the changes that he/she feels necessary and beneficial.
But Succession Planning is a necessary bullet point to consider when laying the groundwork for a new business endeavor. Any future business owner should make a full-circle plan for the business, including the opening, the operation, and the exit when the time is right or required. As a business owner who is passing the business on to the next owner, exit planning should be part of the overall conversation. The current owner should share with the future owner the process of leaving a business. What are the steps to take? How do you know the time is right? How do you prepare for it emotionally? Should employees be part of the conversation and plan? Let the new owner in on mistakes that were made along the way and how to avoid the same ones, or others. Don’t assume he or she can figure it out on their own – provide them with a guide of sorts to help pave the way to a successful and smooth departure. Sharing your knowledge and experiences will lead to continued success under the new owner, and down the road, another smooth transition out of the business.