Recently we met with members of a CEO peer group to discuss transition strategies for them and their companies. While the group included people in differing life stages, all shared the same concern: how long do I hold onto the business and when should I begin planning for the ‘next phase’.
The second question is easy to answer: Now.
It is very common for extremely successful entrepreneurs to build multi-million dollar enterprises and yet have no plan about what to do when it comes time to exit. Here’s four good ones to tackle.
- Shore up financial performance. Financial strength, both in the business and at home, gives you options
- Review the organizational structure. Being able to delegate gives you time to think, and makes a transfer easier to accomplish.
- Your role in a transition. Sellers are often needed, even after a sale, to assure customer continuity. Make sure you are young enough to fill this role without interrupting your plans for what’s next.
Although not as exciting as a new product, or achieving a ales goal, preparing for a transition is just as important.
The question about timing is highly personal, but one thing is for sure: interest is strong right now for well-run, profitable companies.