Even if your Middle Market firm doesn’t have a formal succession plan in place, there probably is a theory or vague idea for it. While it’s an important concept and failing to plan can have terrible repercussions, succession planning can get pushed aside in favor of dealing with the here and now.
Regardless if your Middle Market organization is family-run or not and if you plan to sell in the future or pass the baton, it’s vital you have a strong plan in place for the future.
Why You Need To Have A Succession Plan Sooner Rather Than Later
In a perfect world, circumstances beyond your control would never touch your company. However, we all know of instances where illness, tragedy or unforeseen events have ruined a seemingly strong organization.
Even if you feel succession is far down the road, you can’t control the future. If you need to be away from your business for an extended period, who takes up the reigns? If your C-Suite all left or was gone simultaneously, how would you cope?
Even if nothing bad ever happens, how will your company fare if things just don’t work to plan? What if you think you’ll sell before you retire, but aren’t able to? Or, if a younger generation declines to take over?
It only makes sense to be as prepared as possible as early as you can be.
What To Plan For/Think About
You’ll need to think in the short, middle and long-term to cover all bases.
Start with a contingency or emergency plan. Outline processes in the event of a natural disaster or pandemic which affects yourself, leaders or staff. Plan for short or long-term but not permanent situations.
Next, think about the next few years. How will you go about identifying, training and developing the next group of leaders? Do you know exactly who you’ll pass the reigns to – if so, how will they become more involved in the business? How can you maximize their education and involvement so that when the day arrives they have everything they need?
When do you want to step aside and who would you like to succeed you? What about two or three generations after that? If you plan to sell, how will your leaders, employees, and stakeholders either continue with the new organization or start their extraction?
Do You Need Some Assistance?
You may decide that you can formulate and implement a robust succession plan without assistance, which would be wonderful. But, depending on your experience, you may find trusted advisors or an expert to be helpful.
Here are some reasons to seek help:
No matter the circumstances you find your Middle Market organization in or how you see the future unfolding, a robust succession plan is essential to ensuring your success today and in the future.
So what’s in the Mighty Middle Market for me? — get it right now at www.Go4ROI.com.