We have previously discussed how business owners often begin their businesses due to their love of creating something. There is an element of attachment and control that is naturally felt towards your business and it can be hard to give up some of this control. Business transition will happen at some point. A properly planned transition is imperative if you wish to maximize the value that is obtained while making the transition as smooth as possible.
In the second of three video clips, Wayne Skrypnyk discusses various factors that will impact the ultimate result of the business transition. The senior or departing generation has its own set of things to consider. What is the right timing to exit the business? What will the transition mean for their financial retirement? What will they do if they are not running their business? Sometimes this generation needs some help in understanding and realizing what the rest of life outside of work will be able to offer them and their family. What is it that they really want their life to look like?
The junior or incumbent generation will face challenges as they build the business throughout their lifetime. This generation is also important to the business transition process. Before the senior generation is willing to transfer ownership, the importance of the next generation in demonstrating leadership is extremely important. Both generations need to communicate in order to understand the common goals of the successful transition.