July 25, 2013 – ISSN# 1545-2646
Perpetuate vs. succeed
Are you perpetuating your business or just planning on succession?
As the leadership/ownership (baby boomers) of business get closer to retiring, what efforts are under way to take care of a primary asset in their portfolio – their business?
Regardless of the transition point – 1st to 2nd, 2nd to 3rd or even 4th generation ownership, the asset must be perpetuated to support the financial profitability to keep the original owner whole and not bury the business for the upcoming owners.
Too many owners start too late in the process to set up their business to allow them to extract the revenues to pay themselves out and not place exceptional burden on the remaining business.
When these transition points take place there are many dynamics in motion, – money, personnel, culture, and a real big one is emotion. If this effort is looked at as a succession plan (Succession is the act or process of following in order or sequence) it can sometimes undermine the full set of challenges which must be dealt with proactively.
To perpetuate (To make Perpetual; to preserve from extinction or oblivion) means to not just turn over the steps of the operation but to grow and expand. It is in this transition phase between leadership and culture that ultimate success is set in motion. Taken too lightly the surface appears well intentioned. Taken too strongly it might appear that the future is not only bleak but not worth moving forward. It requires a good sense of realism and understanding from both generations as to what it will really take and that changes are absolutely necessary to get both parties the results they are needing.
This week, if you are 10 years or less from that magical moment of separating yourself from the daily operations of your business then now is the time to start your perpetuation efforts.
Want to talk about the perpetuation of your business? Give JKL Associates a call at (313) 527-7945 to start with a no cost initial meeting.
Questions or comments – email us at partners@jklassociates.com or call our Office at (313) 527-7945
Copyright – JKL Associates 2013
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JKL Associates
18530 Mack Ave #242
Grosse Pointe Farms MI 48236
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