Any transition of business ownership takes careful planning to perform effectively. While it might be simpler to transition internally from one owner or group of owners to family members or other employees, there is a higher level of care which must be taken to ensure the company continues to perform at its optimum efficiency through the change.
As a business coach in the Louisville, Kentucky area, I have helped numerous companies of all sizes and many industries. It’s my job to combine my business acumen with a business owner’s knowledge of their industry to help them reach their goals. This can mean helping during start-up, promoting growth for a business or being an advocate and mentor during a time of transition.
Succession plans for ownership changes within a company or family are an area of specialty for me, and it’s my honor to serve companies in the Louisville area during times of transition. Each company’s ownership change is unique, and each business has different goals, but there are a few considerations to keep in mind when making a succession plan.
We will discuss a few guidelines to remember when planning in order to give you an idea of the services I can offer as a business coach during a time of transition. If you need assistance planning for your company’s future, check out the points below and reach out to me if I can help coach your company through an ownership change.
Establish Company Goals
When an owner or ownership group is outgoing, there is an element of legacy which must be maintained and many times they want the company to remain on the trajectory they have worked hard to establish. When creating a succession plan, it’s important to clearly define the direction of the company under the new ownership group and ensure everyone is on the same page regarding company strategy. A unified front will go a long way toward ensuring a smooth transition.
Assign Key Responsibilities
A major component of succession planning is ensuring no responsibilities fall through the cracks while the transition occurs. Many owners still have key roles up until the time they leave the company, so it’s important to delegate those wisely to people who are well trained and equipped to succeed during and after the transition of ownership.
Communication is key during any major business event, and when planning for succession it is important to communicate effectively internally and externally.
Succession plans should be clear to everyone involved from an ownership perspective, and this often requires legal assistance and agreement of all parties. Ownership stakes, roles within the company and guidelines for future changes in ownership should all be clearly documented and agreed upon well in advance.
Internally, you don’t have to give your stakeholders and employees exact figures of the transition, but you should clearly let them know what changes are being made and if or how their day-to-day roles will be impacted.
If you need assistance planning for an ownership transition in your company and you want to ensure long-term success, I am here to help. Give me a call or fill out the form on my website to get started today.