You may have asked yourself why you would need someone to work with your business on strategy. After all, you had the idea, you know your business and you have built it to this point. Just as athletes and sports teams can achieve high performance in working with the right coach, the right team and in the appropriate system – so too can you and your business.
Many business owners love to build things. The passion to create something is often the motivation at the outset of an enterprise. Inevitably, things get bigger, busier and there are more demands placed on the founder. And many people default into the mindset that they must do more. Having the founder execute on a wider range of tasks is likely not the most efficient way to continue to build your business.
In the following video clip (the first of our three part series), Wayne Skrypnyk, founder of Skrypnyk Group, discusses the role of a business strategist. He also addresses how an appropriate strategy can help business owners to navigate through times of growth and to ensure that the business and family are getting the appropriate amount of attention by focusing on areas in which you have an all-star capability.
We have previously discussed how business owners often begin their businesses due to their love of creating something. There is an element of attachment and control that is naturally felt towards your business and it can be hard to give up some of this control. But business transition will happen at some point. A properly planned transition is imperative if you wish to maximize the value that is obtained while making the transition as smooth as possible.
In the second of three video clips, Wayne Skrypnyk discusses various factors that will impact the ultimate result of the business transition. The senior or departing generation has its own set of things to consider. What is the right timing to exit the business? What will the transition mean for their financial retirement? What will they do if they are not running their business? Sometimes this generation needs some help in understanding and realizing what the rest of life outside of work will be able to offer them and their family. What is it that they really want their life to look like?
The junior or incumbent generation will face challenges as they build the business throughout their lifetime. This generation is also important to the business transition process. Before the senior generation is willing to transfer ownership, the importance of the next generation in demonstrating leadership is extremely important. Both generations need to communicate in order to understand the common goals of the successful transition.
Many health problems seem to come out of nowhere – but there are often warning signs that had gone undetected or were ignored. Your business is no different. In this third and final video in the series, Wayne discusses a proprietary tool that can be used to assess a key question – How healthy is your business?
We have discussed in prior posts the importance of strategy and proper planning for succession. There can be a gap between discussing what we would like to accomplish and the financial impact of executing on a given strategy. That is why understanding the health of a business is so important. Once we have determined the baseline, we can stress test the business model to see the impact of various business decisions in real time. By illustrating the tangible impact of business decisions, we can bridge the gap between traditional consulting and financial analysis to decrease your stress and increase your confidence.