We’re often asked, “What’s the very best Exit Strategy?” Well, … that depends upon your situation. We believe the very best is a Family Member. Why? Here are a whole lot of reasons:
- You have auto-branding! Your name is already known and branded. And if your family member or child carries the same name, it makes the transition that much easier.
- There’s what we call genetic competency, they’ll assume your child is just like you – whether they are or not! So if they like you, they’ll like your child.
- Your clients may even already know your son or daughter and be expecting them to take over your business. They’ll be excited to be a part of that!
- If they trust you, they’ll most likely trust them too! But that trust may need to be proven over time while you are both still working together.
- You have history together.
- You’re turning your business, and its income, over to someone you trust. And you’re keeping it “All in the Family!”
- Once you’ve trained them, you’ll be able to slowly back off the hours you work as you turn various portions of the business over to them. And yet you’ll be able to retain referral fees and advisory income for years to come.
- Plus, you’ll have the opportunity to try them out yourself while you mentor them. After all, you’ve been doing this all your life.
However, there are some BIG IFs with this – IF:
- What IF they don’t want to work it as hard as you have? Many kids have different ideas than their parents.
- What IF they can’t work it as well? As parents we often think higher of our kids desires, directions, and maybe even capabilities than they do. We “want” it for them so we mentally move them into the position even when it may not be what they want.
- And what IF they don’t even want it, but are just working for you initially to earn some income? Or what IF they work and mentor under you for 5 long years only to decide this isn’t for them? IF they leave just before you’re ready to turn it all over to them, where do you go from there?
- And relationships with children can be so different even from child to child within the same family. Is your relationship such that they’ll listen to you and seek your advice as you mentor and teach them the business? Or will they always think their way is better?
- You may still need someone else on your team to cover for them when they want a weekend off or need a 2-week vacation. If you choose to be that person, you’ll soon regret it!
Yes, there are pros and cons to even your Family Member. However, you most likely have to try it – and you should! It’s too important not to give it a try. Our suggestion is simply, keep a “B Plan” in your back pocket at all times – just in case. Just in case they leave when you’re counting on them most. Or just in case they aren’t handling the business once you begin to turn it over to them, and you’re beginning to see that there’s really no end for you in sight. Chances are they’ll make it because that’s the way your raised them, but just in case!
We’re more than happy to help with your “B Plan”. Stepping Up! makes an excellent B Plan. And we’ll encourage you and help you with you’re A Plan directions as much as we can. We suggest talking with us a couple years before your proposed exit date. We can help you prepare, just in case. And finally, should things begin to fall apart someday, we may have some excellent ideas and strategies that can save face for both you and your child. After all the hard work, you don’t want to see your child totally devastated and thinking they’re a failure. We can help! Talk to us sooner rather than later, just in case! Talk is FREE!