Business owners face many challenges in the their day-to-day business lives but nothing more daunting than how they will build the right succession plan for their business and themselves personally when it comes time to retire. Statistics show that 75% of the business owners who recently sold their businesses failed to accomplish their personal or financial objectives. No doubt, the importance of planning for the business owner, their business, and the people around them is critical for a successful outcome.

Recently, I participated in a panel discussion held at the Pyramid Club in Philadelphia attended by a cross-section of business owners who wanted to learn about the best practices that can lead to a successful transition of their business. Listed below are a few key takeaways from the session.

1. Planning is important. You need to formulate a plan for your business transition sooner rather than later.
2. Engage a team of trusted advisors. This group should include a lawyer, accountant, business broker, banker and human capital consultant.
3. Hire a successor.  Whether you promote an insider or look for an outsider, you need to hire the right person or persons who can take your business to the next level.
4. Pass along your knowledge. Your successes and failures will add great insight and help your successor grow more quickly.
5. Enjoy your retirement.  By following point 1 thru 4, you will attain the goals you set for yourself, your business and your retirement.

I hope the above points will provide you with some useful information as you think about planning for your succession. It's never an easy process, but one that if done correctly will provide a long lasting benefit for all parties. If you have questions about how Human Capital Consulting Partners can assist you with your succession issues, contact Jim Geier President and CEO at 215-244-8110.  

SUCCESS STORIES: How Human Capital Consulting Partners Assisted Business Owners with Transition

Human Capital Consulting Partners acts as a trusted advisor to business owners on all the human capital issues impacting their business. Listed below are areas in which we have assisted business owners with their transition.

• Designed a new organization structure
• Developed job profiles outlining duties/responsibilities, competencies and needed experience for key positions
• Recruited C-level executives
• Implemented an executive compensation plan that included a new approach on base salary, annual and long-term incentives bonuses
• Created a stock ownership program in which staff members shared in the ownership of the company and built wealth for the future
• Coached a CEO who assumed new management role on how to handle both the business and leadership components of the new position
• Assessed the gaps that existed between the business strategy, the vision/mission and the needed people skills and competencies
• Conducted pre- and post-due diligence on all the people issues required during a sale of a company

More information on the services Human Capital Consulting Partners provides to business owners can be found at www.hccpartners.com.