The holy grail of business ownership is to build your business to the point it is operated by a management team, leaving you to enjoy your life and the rewards of your risk and endeavour.
The reality is that only a small percentage of business operators ever achieve that level of operation.
Not all business owners want to build a business and hand over to someone else to operate it – many are simply content with operating as sole traders or partnerships, or even building a group of employees while remaining the day to day manager.
The benefit of an exit plan to a management team is that you as the business owner can create space to enjoy time away from the business, while the business continues to grow. Creating that space can enable you to lift your eyes to the horizon and take a more strategic perspective of where you want the business to be.
For those that set their exit plan at a transition to a management team, it is important they make that decision as early as possible in their journey. The reason being that to achieve such a transition you must put in place the appropriate systems and processes as early as possible.
Transitioning to a management team is as much a mental process as anything else. The longer someone spends ‘doing it their way’ the more challenging it becomes to hand over decision making to someone else. It can be difficult for the owner to shift their thinking to working on the business. It takes time to put in place processes, find the right people and develop a trusting relationship.
When we do things our own way its often what works for us. When we hand over to a management group it becomes about implementing best practice and effective reporting processes. Many business owners fear losing control. It doesn’t need to be so; by identifying the performance indicators, having an effective monitoring process and having the management group provide regular reports on the metrics that matter, removes the fear. Today technology can play a large part in ensuring owners have access to live data without having to be onsite.
Of course there is always a risk a key manager may decide to move on or may even need to be let go in some circumstances. Being aware of dangers signs and acting proactively can minimise the risk and ensure the owner has an opportunity to put in place effective strategies at the first sign of trouble.
Using tools provided by MAUS Business Systems I am able to provide you with a process for identifying KPI’s, monitoring and reporting to ensure you remain on top of your business. Email John Coxon to arrange a free, no-obligation conversation.
Remember its not about handing over control or losing control its about remaining in control while enjoying the benefits of all your hard work. Even if you have no desire to transition to a management team, whether sole trader, partnership or growing business the tools I have available will provide you with that control.