29 Jul Succession Planning Helps Lead an Owner to Business Independence
One of the goals of Succession/Exit Planning is for an Owner to become emotionally independent from their business. There is an emotional, powerful connection that an Owner has to their business, a business which they created & have built over their lives. Thinking that this process is strictly something you do “by the numbers” without addressing the Owner’s personal emotions will lead to frustration, procrastination & inaction instead of Owner Independence.
As one of the four cornerstones in the business exit planning process, business independence planning emphasizes the steps that need to be taken in order for the business to become independent from its owner. So as the owner is working on personally becoming independent from their business, their business is doing the same.
When a business can operate successfully without its owner’s daily involvement, the business becomes something of value to its current owner (by providing freedom) and potential buyers of the business since the company’s success is not dependent solely upon the owner’s efforts.
So what do you need to focus on to build a business with such independence? The answer to that question is unique to each business. While there are certain best practices, the ones that each business needs to focus on will differ from business to business.
Building business independence creates business value. The areas that you work on can be referred to as Value Drivers. These are the systems and processes that need to be put in place to drive business value.
Business Independence planning is the process of identifying and then putting a plan in place to build business value through focusing on those Value Drivers that will build your business value and create business independence.
The most successful business owners are able to build strong, stable and independent businesses that operate successfully even in the absence of the business owner.