The Legacy of Holding on Too Long – Business Succession
Meanwhile, Jane had left her law old practice and was slowly building a new practice in a new state, but as any lawyer will tell you, the Great Recession hit the legal profession hard. With all the changes in technology, lawyers had new competition as well. Jane needed to re-think her model and it was tough.
Then Chuck got too ill to run the business anymore and Jerry’s changes had not yet taken hold. It was time to close the business – a very tough loss for the family and employees. While Jerry and Jane had their hearts in the right place, it’s likely Chuck’s business could only have been saved with a big capital infusion. Because Chuck had not built a transferable business all along, and resisted the needed changes Jerry insisted upon, everyone suffered. Jane and Jerry now face the likelihood of moving to a larger city to start over, in mid-life, again.
Chuck loved his business too much. He never spent much time thinking about a future outside of the business. For those of you who think “dying at your desk” will only impact you, remember that every business has family behind it, employees’ families depending on it (and often family members in it).
If you don’t make the business sustainable and transferable, you can drag down a lot good people with you. That is no legacy to leave behind. If you (or your client) want to avoid this scenario and start thinking seriously about your succession plan, take a look at our free guide, What’s Next for Your Future? (click image below).