A Healthy Continuity Plan in Action
Most small family businesses have one person as the “voice”, “face” of the company and one that makes the majority of decisions.
What would it be like if something happened to this person, unexpectedly? Like it or not, this is how illness, accident and death happen - unexpectedly. Picture this happening to you, or to a client of yours.
Think of the impact to all areas of the family and business, the customers, suppliers and communities in which they operate. The ripples are huge and long-lasting. Many businesses wouldn’t survive with such a precipitating event.
A Healthy Ownership Continuity Plan
With a 2nd Gen family business, we’ve been on a journey for the past three years, driving intentional conversations and clarity, one meeting at a time. It hasn't been easy, there's been a few starts and stops, a few awkward meetings, and several 1-1 chats in between meetings.
But here we are. It's time for the key face, voice, decision-maker to step out of the "ownership" circle, though he will remain in the "business" circle for a bit longer. The remaining co-owner and the two incoming owners (now the 3rd generation) are gathering next week for a strategy meeting ... without him. I called him to give him heads up about the meeting.
This will be the first strategy meeting without the co-owner. If this was you, what would be going through your mind (and your ego) right now?
How dare they meet without me - I still have much to contribute!
I can think of many things that can go wrong if I'm not there to steer the conversations!
My retirement depends on the business to continue it's success. What if they make some big bets, take some big risks and lose?
They are used to having me generate the ideas, think of the strategies - who will now speak up, and see their plans through?
During the call, I gave him heads-up about this meeting. He wasn't aware of it, but was happy the new owner group is meeting to discuss and share future ideas, strategies for the business. Things are going well in the business and he is ok not calling all the shots anymore. He appreciated the call and thanked me.
At that moment, I sensed he gave himself a quick pat on the back for initiating this process proactively, three years ago.
You see, he had the gift of time. Three years to prepare for this event, to reflect on his desired timing and future roles, consider what's next for him. Just as important, the new owner group has had time to settle into their new roles, receive mentorship from the exiting owner and feel the responsibilities of being an owner without formally being in the role yet.
His pride, identity (i.e. ego) had time to adjust, adapt. The concerns above didn't enter his mind. Instead, he feels ready and at peace.
Now, think of your client again.
Imagine you have the honour to nudge them proactively into intentional continuity planning sessions. You become the proactive, trusted and creative advisor, looking out for the long-term interests of the family business and its communities.
Take a small step right now ...
Write down a few names of clients you know are NOT having these conversations. Can you think of a friend that is a business owner?
Think of some of the impacts to the business, the family, the communities if the business had to be sold.
Please reach out to. I am happy to chat through creative ways you can introduce this topic and encourage them to start planning, one meeting at a time. Get started today!