Today we’re talking creating a #generationalbusiness. How can you build a legacy #business that someone in your family or a great employee will want to take over?
Successful
Or nobody is going to want it! Nobody wants to take over the Titanic after it’s hit the iceberg. It has to be something that someone wants to run, not something that is pieced together and full of drama.
Established Brand
A recognizable name is easier to carryon and the next person doesn’t have to start over after you have gone. It will naturally have credibility and it will be recognizable to customers.
Durable, Not Trendy
It has to be durable to be generational and to be a legacy business. Build a business that will be around 20 years from now and isn’t just working based on a current trend or fad in the market place.
If Generational, it Should Be Family-run
Family-run businesses have worked well for 100s of years in businesses from auto-body shops to restaurants to coffee shops, to dry-cleaning businesses.
Systems, Not Hidden Recipes
Sometimes It’s like just one person knows the “combination to the safe”, or the secret recipes and when this older person is gone, the business is scrambling to be able to serve its customers.
Develop systems PRIOR TO handing it off so that it can run seamlessly. Systems allow you to hand off a company to a loyal employee or a partner.
Succession Plan
Is there an agreement in place that lays out how the business will be passed to the next family-member or partner? This can happen over the course of time where the person who established the business gets bought out over 10 years with profits from the existing business.
Leadership Plan
Sometimes the person taking over the business doesn’t have the gift of leadership or leadership skills. Test them by performing a pressure test: take leave from the business for a little while and see how they do.
