Entrepreneurs… You think you passed through the greatest difficulties during the last years to build your SME?
We’re sorry to burst your bubble, but there’s still one challenge you have to overcome. Most of the SME’s in Quebec are family-owned businesses. Many entrepreneurs achieve success when it comes to their business and their family, but 70% of them see their succession process end in failure.
The answer is simple: their succession is not planned or is poorly managed.
Your succession must be planned and managed over a period of 5 to 10 years. TIME is essential when it comes to successfully transmit your assets to the next generation.
Discover 7 conditions necessary to ensure the success of your succession process.
7 conditions for a successful succession
- Prepare your succession. It is essential to start the succession process through communication. Share your expectations and perceptions. Your life and career aspirations may be very different from those of your next generation. Answer these 2 questions:
- What inspires me in life?
- What will we expect from each other during the succession process, which will last for several years?
- Plan the handover of power. Approach the handover of power as an ongoing training process. Work on the development of knowledge, know-how and soft skills needed to become a good leader. Develop mutual trust between yourself, your next generation and your team.
- Be a coach and mentor. BE CAREFUL! Do not expect perfection. Let the next leaders of your business learn from their mistakes. Be patient and help them get back on their feet so they can face bigger challenges. That’s why it’s important to plan your succession process over several years. Experience can’t be bought; it has to be acquired over time.
- Surround yourself with a support team. Get help from the right advisors throughout your succession process. Your legal, financial and management advisors must be chosen and accepted both by yourself and your succession.
- Take this opportunity to innovate with your business model. Encourage the next leaders of your business to take their place in the company. For example, you can give them the responsibility to improve your business model in order to support growth in sales and profits.
- Protect your family’s capital. Your SME is important, but your family comes first. The challenge you are facing here is to successfully transfer your business while maintaining harmony among all members of your family.
- Ensure the continuity and growth of the company. Good succession planning, long-term planning and rigorous execution of your strategic plan are essential if you want to ensure the sustainability of your SME.
Do this for yourself: plan and manage your succession the right way!
Then, you’ll finally get to slow down and rely on your next generation.
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