In the journey of entrepreneurship, building a business that lasts for generations is the ultimate dream. This concept, known as an “evergreen business,” is a powerful idea that challenges the sobering statistic that 70% of businesses fail before the second generation of leadership takes over.
But how do we create such enduring enterprises? The answer lies in a seven-step process outlined in my book “Succession Planning for Impact,” and it all begins with confronting your fears.
Step One: Face Your Fears Head-On
As an entrepreneur, you’ve poured your heart and soul into your business. The thought of stepping away or passing the reins to someone else can be unsettling. This fear is natural, but it’s also a significant obstacle to creating a lasting legacy. That’s why the first step in growing an evergreen business is to confront these fears head-on.
The Unanswered Questions
A mentor from the Tugboat Institute, an organization solely dedicated to supporting evergreen businesses, shared some common fears with me that entrepreneurs grapple with:
1. “What will happen to the business after I’m gone?”
2. “Will it thrive?”
3. “What will happen to my people?”
4. “Will they receive the same level of care in my absence?”
These questions reveal the deep-seated anxieties that many business owners face when contemplating succession planning. In “Succession Planning for Impact,” we delve into three primary areas of fear:
1. Loss of identity
2. Fear that someone else will do a better job
3. Fear of unanswered questions
All of the questions mentioned by the mentor from Tugboat fell under this third area, fear of unanswered questions.
The Power of an Outside Voice
Confronting these fears often requires an outside perspective. As Ken DeWitt, an EOS Worldwide Franchisee, states in the book, “Start NOW with Harry’s ‘Seven Succession Conversations’ over the next year, and you’ll do more to ensure your lifetime’s efforts will continue to bless the next generation and your community.”
An outside advisor can help you understand that your company’s impact is worth continuing indefinitely. They can show you that what you’ve built is precious, deserving to be cherished and stewarded for future generations.
The Evergreen Vision
An evergreen business is more than just a company that survives; it’s an entity designed to last and continue its purpose for generations. The impact of such a business is profound and life-changing for employees, vendors, customers, and owners alike.
Creating an evergreen business only happens when owners fully grasp the responsibility they hold. It takes courage to build a business and make it prosperous; it takes even more courage to realize you must prepare the company to be given away.
Practical Steps to Confront Your Fears
1. Acknowledge your fears: Write down all your concerns about succession planning. Be honest with yourself.
2. Start the conversation: I recommend having one conversation per month to allow thoughts to marinate among the leaders involved. Remember, the senior leader should speak last, if at all.
3. Address specific concerns: If you’re worried about family succession, start having open discussions about the skills and passion required to lead the business.
4. Consider alternative ownership structures: For founders not planning a multi-generational family business, options like Employee Stock Ownership Plans (ESOP), Direct Employee Ownership, or Employee Ownership Trusts (EOT) can be explored. Each has its pros and cons, but an EOT, for example, can ensure employees have a share in profits, a voice in governance, and that the mission of the business—and its jobs—can be preserved for generations.
5. Seek outside counsel: Consider working with a succession planning expert or joining a community like the Tugboat Institute that specializes in evergreen businesses.
Remember, confronting your fears is just the first step in the journey towards creating an evergreen business. But it’s a crucial one. By facing these fears and unanswered questions, you’re laying the groundwork for a legacy that will continue to make a positive impact for generations to come.
As the book wisely advises, “Don’t allow Fear Junction to ruin your company’s ability to make a profit, bless its community, and advance its purpose in your eventual absence.”
Are you ready to confront your fears and build a legacy that lasts? The future of your business – and its impact on countless lives – depends on it. Start your succession planning conversations today, and take the first step towards creating a truly evergreen business.
Harry T. Jones
P.S. Are you ready to take the next step in your succession planning journey? I invite you to join our exclusive Succession Planning Mastermind group. This is a unique opportunity to connect with like-minded business owners, share experiences, and gain valuable insights to help you create your evergreen business legacy.
To join, simply email me at harryt@cultivatingimpact.biz with "mastermind" in the subject line. Together, we'll navigate the challenges of succession planning and work towards building a business that truly lasts.
Don't miss this chance to be part of a community dedicated to creating a lasting impact. Email me today and let's start shaping the future of your business!
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