Automotive & HD Business Management Articles.
Bob Greenwood. November 1, 2012. ( over 7 years ago ) 1,180 views
I've been fascinated by the number of families talking about putting together and completing a succession plan for their shop business with their children, but parents are failing to make it happen.
Consider this point carefully……. “When parents stop growing, they become confusion to their children”
I have found that you can not lead another group of people such as your children past the point where you are. In other words, you can only be to others what you are to yourself. That means there must be a commitment to consistent improvement.
Too many parents would love to have their children carry on with the business, however, the parents have been stuck in the world of the 90’s or even the 80’s style thinking and are not up to date with issues and solutions of this decade. As a parent, you are to be the example, the guide, the point of clarity. When you’re not up-to-date, you can’t lead the children by demonstrating the correct habits to mimic and embrace in order to allow the business to continue to meet the challenges of the tomorrows. You have become the centre of confusion to them.
I have heard parents actually say to their children “just listen to me and things will be fine”, yet in reality, the business is broke financially and could certainly not support a successful financial succession plan. That’s not healthy to those that are looking to the parents for direction and definition about a lifetime career in this industry.
Consider that without the right bottom-line profitability solutions and proven processes to sustain the right dollars coming in, no succession will be successful… someone is going to starve. Starvation was not the objective however, discussion of this issue is not being properly addressed.
Review your outlook to succession… is your succession plan in writing, and does the math work for all parties meaning, the parents, the children (the purchasers) AND at the same time allow for the business to sustain bottom-line profitability to support future growth?
Define a pathway that takes you from sketch to conclusion.