Planning to Retire - What happens to your business?

Many independent repair shops in the U.S. are family-owned and family-operated. Many are second-generation, and a small portion of third-generation shops that have successfully passed from the original owner to the next. But some of you own a great business, you might be in your late 40's or mid-50's, and you haven't given a thought to what might happen when you plan to move on. You're not unique. According to the Wall Street Journal, full half of public and private corporate boards do not have a formal CEO-succession plan in place. Even giant corporations like Merrill Lynch and others who spend millions of dollars recruiting and training employees, don't think about who might run the joint once the "big guy" leaves.

For some owners of small businesses, it's a simple process. You decide to retire, no one in the family wants to carry the business on, so you try to sell your shop as a viable operation or you simply close your doors and try to sell the property.

You might say to yourself, "I'm just trying to get through today, or this week. I don't have time to think about 5 or 10 years from now." But in reality, if your retirement is 5 to 10 years from now, NOW is the right time to begin thinking and planning. In order to build a successful business that will continue to thrive after you are gone, you need to groom the next leader of your business over a 3 - 10 year timeframe.

Succession planning isn't something you do on a Saturday or Sunday, and then consider it done. It is a process of filling a pipeline with talent. And believe me, I speak from experience, it can be difficult to groom the future leader of your company. Sometimes people fire people they are afraid might be "too good" for their current position, they may feel threatened by that person's expertise. You might be better off subordinating your fear, and instead, encouraging the professional growth and leadership abilities of that person. You might be pleasantly surprised.

You should consistently review the performance and talents of your people. Don't surround yourself with people who always agree with you - use other people to expand your own expertise. Be willing to share power with potential heirs, and give them the authority they need to grow. At the same time, give them the tools they need - this may include additional education. Help them handle a variety of challenges. As they grow into the position, you will probably grow as well. Focus on the future of your business, and not on last week's work. Our business models are changing more rapidly than in previous years, and you need to find or develop a leader with strengths and talents that are different from your own. Learn to share the load, embrace the change that will come with new leaders in your business, and eventually you will be able to retire with confidence that your business will thrive and grow well after you're gone.