03 Nov Business Owner Procrastination = Key Employee Dissatisfaction
Why are Business Owners staying longer? Seems like a simple question, but in reality it is more complicated than one would think. Most business owners simply don’t want to leave their business. Many do not have enough money saved to live financially independent of their business. Some owners unfortunately didn’t find the time to recruit and retain any key employees that can successfully operate the business in their absence and their family members aren’t quite up for the challenge.
It is interesting to note, some are worried because they do not know what they will do if they don’t have a business to go to every morning. They have no personal plan for their time. Or, in some cases, there are no buyers for their business. The vast majority of business owners are baby boomers who are all looking to leave/ exit their companies at the same time and this is putting more sellers than buyers into the market place. All of these issues are quite simply stressing the Baby Boomer Business Owner out!
While Business Owners contemplate these concerns, they cannot forget the important role their Key employees have in achieving the Owner’s definition of Independence.
Key employees are critical to the success of their business and these employees are trying to determine if they have a future with the business. With no clear direction for what the owners’ plans are for the business, the Key Employees are looking for opportunities outside of their current employers. Now is the time to share future plans for each Key Employee or risk losing them. Develop & communicate a Key Employee managerial development plan outlining a clear picture for their future & their responsibilities/opportunities with the business and be certain to include an incentive plan that works in conjunction with the Company’s business plan.
By not providing a clear vision of the Key Employee’s future with the Company, the Owner risks losing the very people who are critical for the Owner ever becoming independent from their business.