Jack Mencini and Adam Sonnhalter of Maximum Value Partners who are the co-hosts of Dirty Secrets of Small Business tackle the thorny question of: How do you know your son or daughter can run the business when you are ready to transition out?
The sons and/or daughters don’t have the same knowledge base that the original owner (their dad) had when he started the business. Is that really necessary for the transition to successfully work?
According to Adam who, together with Jack, has coached hundreds of small business owners, when it comes to small companies with one to 25 employees, the important component is that the young people taking over should be comfortable with running the business. From the big picture standpoint: How do find and retain customers? How do you find, train and keep good people? How do you make sense of the numbers with the business? If the daughter or son have a good understanding of the dynamics of running the business and have had great conversations with the dad on all the insights associated with the business, then there is a good chance the transition will go well.
But usually, when the transitions starts, the small business owners don’t always look at all the details. Have the children taking over for the business have the knowledge of running the company and have they learned the nuances and details of keeping the business thriving to be successful.
To do this effectively, Jack and Adam coach the owner and the new owner to be how to Plan, Direct and Control every element that is key and important for the business. This takes time and planning and answering the key question around the right time for the son or daughter to take over.
There is also the dilemma of who to chose from your children in selecting the right candidate to take the reins of the business.
For the entire overview on how knowing how, when and who to transition your business to the next generation, listen to the January 23rd podcast.
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If you have a success story or a question you would like to share, email or call (firstname.lastname@example.org or 877-849-0670). You can also call in during the show each week at noon (EST) – 1:00 pm on WINT 1330 AM, call 440-946-9468 to ask your question to the Maximum Value Partners’ coaches.