The line between “business” and “life” can at times become blurry for Middle Market CEOs. You’ve spent years nurturing the business, and if your firm is a family one, you see your colleagues at every family gathering. When life and business are so intertwined, it’s hard to think about handing things over to someone else. But careful succession planning is key to shaping both a legacy and your business’s future.
Mr. Michael Bekins, Founder and Managing Partner of CapitaPartners, an executive coaching and CEO succession consulting firm and an ROI Strategic Alliance Partner, elaborates, “Middle Market CEOs have to ask themselves what they want their legacy to be for the business. What do you want for yourself, as far as work/life balance? And what do you need to put in place today to make that happen?”
Choosing the right successor is a big part of that, and Bekins believes that there are at least two main components of successful succession planning.
Where Is Your Company Going?
According to Bekins, the first step to choosing a successor is deciding what you want that successor to do. What do you want the company to look like five to ten years after your retirement? Once you know where you want the company to go, you can start looking for a successor who will be the right fit.
Succession planning doesn’t happen overnight. Bekins explains, “Whether you choose a family member, a company insider or an outside executive, you need to bring them in at least a year or two in advance, preferably in the number two spot. Your successor needs time to build a relationship with both the board of directors and the owners. He needs time to understand the company’s vision and strategy. He needs time to build a network both within and without the company. And he needs time to build a track record. Your goal should be that by the time you name your successor, it’s so obvious who it will be that everyone says, “Well, of course!”
Succession planning comes down to knowing where you want the company to go, finding the right person to take it there, and giving that person time to build the foundation he or she will need to succeed. It may be hard to think about handing over the reins one day, but it will eventually happen whether you plan for it or not. Having a succession plan in place is the best thing for you, your family, and your business. What’s your succession plan?
So what’s in the Mighty Middle Market for me? — get it right now at www.Go4ROI.com.