Posted: May 17, 2018
When you started your business, you thought you would have more choices; you could (in theory) decide when you worked, who you worked with, what projects you took on etc… That might even have been part of the impetus for starting your own business in the first place; being able to call the shots.
However, decision making isn’t always easy. Often business owners have choices within their businesses that they want to make but they put them off, or feel ill-equipped to navigate them.
Where you are in your business lifecycle will largely determine the kinds of decisions you need to make, all of which are significant in their own way. However, it’s likely that at some stage you will need to consider succession.
Looking towards succession – whether this is in the short, medium or long term in your business journey – can be daunting. When you look down the road, would you consider selling your business? Growing it? Merging with a larger entity? Or acquiring another complimentary business? Would you consider passing over the leadership of your business and appointing a general manager? In all of the considerations above, it pays to have choices…
It all starts with a plan…
A position of choice, for yourself and your business, is the place many business owners aspire to be, but few manage to effectively plan for it, and fewer still follow through and execute on the plans required to get to that position. The ones that do though, tend to perform in the upper quartile for their sector.
Like you and your business, these businesses didn’t start off in a positive position of choice; they arrived there after making a deliberate set of choices that put them ahead of their competitors. The result is that these people have created a self-sustaining business that thrives.
We all want options; having a positive range of choices is a liberating position for any business owner to be in. Having choices means you really can chart your course and, ultimately choose your destiny. Having choices means that you have built a high-value business that you can truly reap the rewards of. And, at a practical level, having choices means that your business is structured in such a way that recurring revenues and profitability are dependable enough to afford you this range of attractive options. Now that’s empowering.
However, having choices involves working to a plan; creating an independent and self-sustaining entity that thrives requires us to look ahead. This often means pulling our heads up out of ‘business as usual’ and making some decisions about where you are going. You don’t have to have all the answers yet, but you need to start.
Achieving ongoing consistency of revenue (and revenue growth!) requires that a business has a number of key pillars in place.
· The people within your company know where the business is going and actively engage, both internally and externally, to improve the performance of the business towards that vision
· The business has measurements in place in key areas that track and report on this performance, providing a strong sense of accountability
· The financial returns of the business are strong and allow the business to make choices regarding where they want to invest.
At Advisory.Works, our extensive experience has shown, time and time again, that the businesses that actively take steps towards longer-term goals are the businesses that ultimately put themselves in a position of choice; they have momentum and are moving towards their vision. Not only is this inspiring, as seen in their high staff retention, it also impacts their bottom line; these businesses earn in the upper quartile for their sectors. It will come as no surprise also then that these businesses are more valuable than their competitors.
Having positive choices is not a destination, it’s a proactive journey of deliberate actions over time. It requires not only forward-thinking, but also the engagement of your team. Think of a sports team that you admire; the high performers – the winners – are the teams where the players are all emotionally engaged. The same goes for businesses.
If you want to put both yourself and your business in a position of choice, you need to start now.
#succession #strategy #exit #choices
This blog was written by Simon Mundell, Managing Director, Advisory.Works.
BUSINESS SUCCESSION PANEL – VIDEO
Recently we held an expert panel event on Business Succession. Check it out on our Youtube channel page. The panel consisted of those who have been through it, and those who advise on it. It is a great chance to hear different perspectives on the process
BUSINESS SUCCESSION PROCESS
Click here to see more information on our Business Succession process