LSO Award

Whenever I begin a workshop on exit, or succession planning for business owners, I begin with the obvious and much avoided question, “ If a catastrophic event removed you from your business today, what would happen to it?  To your family?  To your employees?  To your customers and vendors?

This question is particularly difficult for owners of privately-help businesses with fairly simple infrastructures.  Most entrepreneurs are optimistic, and so involved in their businesses, that they typically put off long-term exit planning.  Therefore, this question raises potentially painful issues, because they know the answer, and that their procrastination can have devastating effects.


A well-designed succession plan (note that “success” is the root word in “succession”) allows a business owner to pre-determine not only the destiny of the business, but also his or her destiny.  Just as a home may be the largest asset of the typical American, for the majority of owners of privately held businesses, their business is their greatest asset. 

What happens to the business in the long run has a dramatic affect on their lives, not only financially, but often psychologically, emotionally, and socially.  Therefore, a succession plan is essential for a business owners who wish to arrive at a specific destination after they choose to leave their business, whether for retirement, or for other pursuits.

What is a succession plan, and when should a savvy business owner begin the process of developing one?  The best answer is that no business plan should be written without including an exit strategy.  However, if you have not yet developed an exit strategy, now is the time to begin.

Succession planning can be fairly complex – because it comprehends what will happen to the business when the owner is ready to leave the business.  A well-devised and executed plan typically provides an equity event for the owner and continuation of the organization. The  hows  of succession planning are as varied and as complex as the whats.   One thing is for sure, when a business owner fails to plan, options disappear.  

In the next few weeks I will continue to provide more detailed information and resources in a series on business succession planning.   Join me next week to learn more!


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