By Jim James, Host of The UnNoticed Entrepreneur.
Pouring passion into a business endeavour without plotting eventual escape risks finding freedom flipped to confinement. Yet only 20% of owners bank funds when exiting companies constructed through years of sweat and sacrifice. How flip such finances and fate? Succession+ founder Darryl Bates-Brownsword spotlights essential steps securing future solvency.
Start Succession Planning ASAP
Delaying succession designs courts disaster. Instead, immediately institute infrastructure enabling extracting yourself without enterprise imploding. Construct capacity continuing absent your daily direction before departing.
Otherwise, strapping yourself inextricably to operations hamstrings hireability. Buyers demand evidence alternatives adequately fill founder shoes. Grooming leadership layers proves a business body survives separating from its brains.
Clarify Exit Goals First
Envision expressly the exiting experience you expect. Detailing destination provides direction determining journey details. Three archetypal entrepreneur mindsets map common courses.
Some founders finish flogging full-tilt, craving climax-capping careers. After maximising growth, they sell steep, perhaps seeking investment rocketing valuation stratospheric beforehand. Like rock stars, they exit on top at their peak.
Alternatively, others adopt more measured pacing. Having achieved adequate assets, they simply step back bit-by-bit, nursing companies’ next stages. Leadership transitions gradually, sale structures varying per preferences.
Unfortunately, inertia impales many owners until unravelling externalities force unfavourable filings. Lacking liquidity leverage when crises crash or complacency kills, they fade fighting fruitlessly against failure. Fate follows forethought.
Fine-Tune Finances for Flexibility
Commence cataloguing company financials demonstrating health and momentum. Keep contracts conveying commitments collated and accessible. Organise ownership documentation plainly plotting proportions.
You steer but may not see rocks sinking your ship. So ensure emergency efforts keep careers sailing should you disembark unexpectedly. Instituting insulation protects passengers remaining despite captains capsizing.
Having undergirded the enterprise, strengthening increases sail strength towards summiting industry Everests. Accelerate account balances, assets and talent to set sights on swelling value skyward. With financial furnishings fortress-like, freedom festivities flip from fantasy to forthcoming.
Beware Blindspots Blinding Buyers
Curate a crack crew cognisant of continuation concerns and succession specifics sufficiently to salve purchaser qualms. Discreetly detail direction to diffuse destabilisation. Diligently drive delivery despite distractions.
But limit circulating changes containing contingent collapse catalysts. Avoid announcing actions potentially unnerving employees, suppliers or customers absent assured actualised agreements. Fears falsely triggered torpedo transactions, ergo exercise extreme care containing concerns internally.
Rest assured rewarding revered staff later for loyalty lingering through limbo... and likely beyond. New owners note continuity conveniences conversion complexity cured. Capitalise on goodwill gesturing gratitude grace.
In Conclusion
Now you’re primed for succession - yacht sailing off into sunsets beckoning. Achievement awaits actualised through foresight. But first step switches success to gratification: consult specialists steering launches safely seaward. Captains require proper preparations procuring peaceful ports promising pleasures. Partner today prolonging affluence for tomorrows unchecked by unnecessary uncertainty. Bon voyage!
