Nobody Plans to Fail; They Simply Fail to Plan
October 16, 2024
Business transitions are critical to long-term success. However, startling statistics reveal a widespread lack of preparation among business owners, placing millions of businesses at risk as they approach ownership changes in the coming decade.
The Hard Truths:
● 75% of business owners DO NOT HAVE a formal succession plan.
● 70-80% of listed businesses NEVER SELL, often due to poor exit strategy preparation.
● 66% of family-owned businesses DO NOT SURVIVE the transition to the next generation.
● 48% of business owners DO NOT HAVE an exit strategy despite planning to leave the business within the next decade.
● 50% of businesses DO NOT maximize their value because they don’t align leadership and operations.
These statistics highlight a crucial issue: while many business owners have sacrificed much to build their business and aspire to sell or transition their company, the absence of a well-thought-out plan can lead to unforeseen challenges. A lack of preparation often results in missed opportunities, financial losses, and, in many cases, the failure of the business itself.
“If you fail to plan, you are planning to fail”. Benjamin Franklin
The Importance of Planning
Planning is essential for achieving your business objectives. A comprehensive succession plan, within your corporate governance program, addresses the logistics of a transition and considers the alignment of leadership and operations to ensure that the business retains its value. When business owners take the time to develop and implement these strategies, they create a clear path to success.
Action Steps
To avoid becoming part of these alarming statistics, business owners should:
1. Assess their current situation: Understand where your business stands in terms of leadership, operational alignment, and marketplace value.
2. Develop a formal succession plan: Document your strategy for transitioning ownership and ensure key stakeholders are involved.
3. Prioritize communication: Keep open lines of communication with your team and family members about the future of the business.
4. Review and adjust regularly: Business landscapes, economics, and plans change. Please periodically revisit your succession plan and e to ensure its relevance.
Ultimately, planning and preparation are the foundations of successful business transitions. Proper planning safeguards your business's future and enhances its chances of thriving through ownership changes.
Don’t let your hard work go to waste; start planning today.
Business transitions are critical to long-term success. However, startling statistics reveal a widespread lack of preparation among business owners, placing millions of businesses at risk as they approach ownership changes in the coming decade.
The Hard Truths:
● 75% of business owners DO NOT HAVE a formal succession plan.
● 70-80% of listed businesses NEVER SELL, often due to poor exit strategy preparation.
● 66% of family-owned businesses DO NOT SURVIVE the transition to the next generation.
● 48% of business owners DO NOT HAVE an exit strategy despite planning to leave the business within the next decade.
● 50% of businesses DO NOT maximize their value because they don’t align leadership and operations.
These statistics highlight a crucial issue: while many business owners have sacrificed much to build their business and aspire to sell or transition their company, the absence of a well-thought-out plan can lead to unforeseen challenges. A lack of preparation often results in missed opportunities, financial losses, and, in many cases, the failure of the business itself.
“If you fail to plan, you are planning to fail”. Benjamin Franklin
The Importance of Planning
Planning is essential for achieving your business objectives. A comprehensive succession plan, within your corporate governance program, addresses the logistics of a transition and considers the alignment of leadership and operations to ensure that the business retains its value. When business owners take the time to develop and implement these strategies, they create a clear path to success.
Action Steps
To avoid becoming part of these alarming statistics, business owners should:
1. Assess their current situation: Understand where your business stands in terms of leadership, operational alignment, and marketplace value.
2. Develop a formal succession plan: Document your strategy for transitioning ownership and ensure key stakeholders are involved.
3. Prioritize communication: Keep open lines of communication with your team and family members about the future of the business.
4. Review and adjust regularly: Business landscapes, economics, and plans change. Please periodically revisit your succession plan and e to ensure its relevance.
Ultimately, planning and preparation are the foundations of successful business transitions. Proper planning safeguards your business's future and enhances its chances of thriving through ownership changes.
Don’t let your hard work go to waste; start planning today.
