ST. LOUIS, MO (KTVI)- If you or a loved one owns a business, chances are you've put a lot of time and energy into building it. But not much thought is put into transitioning when you're ready to retire.
Matt Allgeyer of Wamhoff Financial Planning and Accounting Services stopped by FOX 2 to discuss what business owners need to consider for executive succession.
1. The business is the owner's legacy.
•While it can be challenging to consider not being a part of the business at some point in the future, it can also be very energizing to consider the legacy that's being left behind.
• With proper planning, the business can remain profitable and prosperous for years to come.
• Thinking about what the legacy looks like can breathe life into the owner and empower the team to want that legacy to be successful.
2. Think of the future, not the past.
•It can be very freeing to remove the limitations of thoughts like "this is how we've always done it," or "that will never work because..."
• As the business owner, allow yourself to dream and think about all possibilities. Encourage your team to dream with you and create the vision for the future.
• Identify and empower the future leaders-those who will be responsible for embracing your legacy and carrying it out.
3. Practice open and transparent communication.
• Encourage difference of opinion and invite open, honest, transparent communication.
• Be keenly aware of how team members are reacting and address those feeling to prevent them from becoming disengaged.
• Share information about your vision, plans, and dreams for your legacy.
• Don't be afraid of the reactions you may experience. All conversations, both good and challenging, are valuable.
• Prepare the team for when a transition may occur and what it will look like. This will help them be informed and enhance their feeling of security.