3 Questions To Ask About Growth And Building Value In Your Business
Succession planning gets a bad rap. It is assumed the identification of future leaders is all that is required. Therefore, many multi-unit franchise owners shy away from engaging in this process because the last thing being thought of is exiting or retiring. We challenge you to think broader and more long-term. Although identifying your future successor is a foundation of succession planning, it is only one very small part.
In reality, succession planning is not solely about you leaving the business. It is about building a foundation of success today which will set the course for future generations. Your organization may be in 'growth mode' so you've put succession planning on the back burner. Or you might not yet be thinking about what your exit strategy will be (and perhaps you really do not want to think about it right now). However, growth without an eye on the future is a dangerous thing.
Before you make that next deal, or as you start and/or continue with your growth plan, you should ask yourself a few vital questions surrounding growth and building value:
- Do I have synergy among my management team and leadership?
- Teamwork and management synergy is imperative to business succession simply because you as the franchise owner cannot do it all. As the franchise owner it is crucial you set the standard for teamwork and leadership synergy. This allows you to encourage all involved in your franchise to be team players and work in alignment towards the achievement of your business goals.
- Do I have the excess capital and resources that growth requires?
- Evaluating the performance of your business involves more than just looking at money and profits. Yes, you need the capital to grow, but there are other critical areas to include. For example, looking at where your business stands compared to your competitors, ensuring your franchise and employees are working as effectively and efficiently as possible, and how your business is prepared for the future.
- Do I have the confidence that my successor(s) will be able to manage what I'm building?
- As a franchise owner, your business ultimately takes on your values and priorities. As the owner, you establish both the limitations and possibilities of business growth and longevity through multiple generations. Communication of your goals and priorities to all those involved in the business is critical. This ensures you achieve buy-in to your vision of success and builds confidence that your successor can manage what you have built.
In addition to the business profits you generate now you have to be focused on protecting all that you are building well into the future. Achieving business success and succession are not solo endeavors. A great deal of your business value is locked in the resourcefulness, commitment, enthusiasm, and teamwork of your management team.
Share this Feature
Comments:comments powered by Disqus
- Multi-Unit Franchising
- Get Started in Franchising
- Open New Units
- Featured Franchise Stories