Succession Planning-Parke Kallenberg

My wife has been running a business with 3 locations for many years.   She is reaching that decision point in life where defining the next step is challenging.  Does she want continuous income or does she cash out?  What are her options?   Every industry, every business owner faces these same questions.   The key to developing good options is focused succession planning.   People tend to only think of succession planning as an exit strategy.  Quite the contrary!   There are several key benefits to implementing succession planning now:

 1.       Prepare your key team members to step up, take more responsibility, and allow you to focus on your priorities in or out of the business.

2.       Develop a leader or leaders that are fully developed to take on more also means you may be able to step away and have continuous income since the business continues to thrive.

3.       Maybe through mentoring one or two of those leaders you actually find an in-house buyer that can continue your legacy while also providing them the opportunity of a lifetime.

4.       Even if you plan to stay fully engaged for the next X number of years, building a team that can manage and lead your current business means you can flex your skills and dreams to build even more business, new locations, new service or product lines.

 The real advantage to beginning succession planning now is three-fold.  

1.       If you plan to stay actively involved your team will improve reducing your stress and improving results.

2.       If you plan to step away but derive continuous income you have already put the team in place to continue running the show while you reap the rewards you have worked so hard to obtain.

3.       If you plan to cash out, you may have identified an internal buyer or at the very least improved the team and business performance to the point that it increases the sales price for stepping away.

 Good news is my wife is a planner.   30 years as an owner operator and she has launched several employees into their own businesses.   This success, combined with the consistent results and strong team she has developed gives her all the options she could hope for when she wants to make a decision. 

 I guess that is why the word success is the root of succession.   What are you doing to develop your people to the next level?   What responsibilities can you hand to them to lessen your load and free up your drive and talent to work on the business instead in the business?  What is your end goal and have your provided yourself as many options as possible?  Begin with the possible options at the end in mind.

Parke Kallenberg