Who's Next?

When most entrepreneurs are getting started, their only thought is how are they going to get people to buy from them. They don’t give much thought as to what will happen when they finally decide they no longer wish to run their own business. More and more of my coaching clients mention that they cannot find someone to take over their business. Most of the time, their employees are not interested in those responsibilities or do not take it seriously enough to be considered. In addition, many of the employees who work for you do so because they have no interest in being an entrepreneur. And, if they do, they usually want to run their own business — just like you did.

There is nothing wrong with any of the examples in the previous paragraph. Some people just have an entrepreneurial bent and that’s all they want to do. Others prefer to be employees with 9-to-5 jobs and be able to go home and leave their work concerns behind. Sometimes, entrepreneurs just want to work for somebody else to learn more about business before they decide to break out on their own and run their own enterprise. That’s actually a wise thing to do. So, where are you supposed to find someone to take over your business when you’re ready to retire?

Naturally, you can sell your business — provided that you have created systems and structures that are easily duplicated and that you’ve made it possible for others to run profitably without your involvement. But that still doesn’t answer the question as to who is going to do it.

My friend and colleague Bill Stratton of EOS (which stands for Entrepreneurial Operating Systems) specializes in helping businesses plan for their future and identify and equip tomorrow’s leaders. His approach is to help a company’s leaders solve their own problems and carve their own path forward. The time to start thinking about a succession plan isn’t when you’re ready to retire. It’s right now. As you look over your employees, gauge whether or not any of them has the inclination and interest to follow in your footsteps. If not, you may want to look at some of your best customers. They have certainly been invested in your business already. Perhaps you may find one who likes what you do so much that they’d like to do it themselves, but lack the capital needed. I’ve seen a number of my clients get some of their best people this way. It’s called sweat equity. A person buys into the company by investing themselves — if not their money — into your operation.

There are always investors who are looking for great places in which to get involved. Make yours as attractive as possible by finding the pillars who will keep your operation running smoothly, with or without you.

“The great use of life is to spend it for something will outlast it.” – William James

Let me hear from you.

This excerpt is taken from my 5-part series entitled The Leadership Academy. I encourage you to click here to register for The Leadership Academy program, which will be held on five consecutive Tuesday mornings on October 3, October 10, October 17, October 24, and October 31, 2023 from 9 AM to 12 noon Eastern Standard Time. This program will be presented partially in person at the Comfort Suites in Manheim, PA (classes 1, 3, and 5) and on Zoom for the other classes. This event will also be available through live streaming.