Building and developing a business takes commitment, dedication, and hard work. As your business grows and thrives, you can feel like a proud and protective parent – and it’s understandable. You have nurtured and supported the company’s growth and health much like raising a child. And then, there’s that proud moment when you recognize that it’s time to let go. All of your hard work has paid off, and a new chapter awaits you.
But how do you say goodbye? Most business owners find this emotionally difficult for myriad reasons. Some might worry about whether they can meet their financial goals. Others wonder how their family will be cared for, especially if family members benefit from the business, or may, in the future. Yet another concern may be what else there is to do beyond running the business. “What will I do with my time?” asked one business owner.
These are all valid concerns, and they often keep a business owner from moving forward long after they should have moved on to reap the benefits of their hard work.
Here are some steps you can take to begin developing your exit plan.
Form your advisory team
President Franklin D. Roosevelt recognized that he needed expertise around him to fuel major reform. He formed a close group of advisors dubbed a “brain trust” to help make this a success. Each of these advisors contributed the best knowledge from their respective areas so that President Roosevelt could make the most effective decisions.
Key roles to consider as you form your team as a business owner are a certified professional accountant, a business attorney, a wealth adviser, an investment banker, and an owner transition coach/adviser.
A caution here: Be sure and get solid referrals for prospective team members. Then, as you interview them, look not only for their expertise, but also for the energy that makes you comfortable and confident, and their ability and desire to work as part of a team.
Craft the plan
With the help of your advisory team, craft your transition plan. This should address succession planning in the business and any leadership development and transition needed, a plan for one’s business and personal finances, and much more.
Your team should help you with action steps and timelines, and they will provide you with points of consideration you may not have thought about.
Once you have this plan, your transition coach should help you outline (and role-play, if you desire!) any critical conversations you need to have with key staff, family, etc. This is often where a lot of business owners pause. Be sure to ask for that help.
Identify what is holding you back
Even if you determine your life “after the office,” you may still find you hesitate in moving forward.
Identify what causes you to pause. Pinpoint any other doubts that are holding you back and confront them. It could be that one conversation you dread having.
Or it could be that you aren’t sure what you will do with the rest of your life. Every business owner’s situation is different.
One business owner I worked with finally confessed, “I am embarrassed that I don’t want to wake up that first morning with nowhere to go, and no one counting on me for solutions.”
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This was a poignant moment for him, and I was privileged to support him as we worked through a plan to answer these fears and to help him move forward.
If you find yourself stalling, please consider talking with the appropriate advisory team member. They can help you work through what might be holding you back to help you embrace that great next chapter.
Patti Cotton serves as a thought partner to CEOs and their teams to help manage change. Reach her at Patti@PattiCotton.com.