Succession Secrets

I identified 5 major variables to the succession decision. Today’s episode is about discussing these. The first variable is the trigger. There are three triggers to transition, including (1) a compelling alternative future for the business owner / leader (another career, post-entrepreneurial pursuits, etc.); (2) her potential inability to continue running the business (ill health, unsustainable/loss making business); and (3) a potential case of burnout (able to continue, but no more steam in the engine). The next variable is whether the leader can afford to exit. Can he retire? Does he have an alternative income opportunity? Is the business sellable? The third variable is whether the business is ready to be transitioned. It may not be able to carry the cost of new management. The successor(s) may or may not be ready to take over. Is know-how of the business institutionalized (“processized”, documented)? The fourth variable is whether the business owner or leader can secure her net worth locked up