Page 42 - GBC spring 2016

Donald Cooper, MBA, CSP, HoF
Donald is a Toronto-based international management speaker and coach, helping business owners and managers to rethink, refocus and re-energize their business to sell more, manage smarter, and grow their bottom line. Donald can be reached at 416-252-3704 or by email at donald@donaldcooper.com or donaldcooper.com.
What's Your Succession Plan and Exit Strategy?
It can be difficult to think about succession planning and exit strategies. You are accustomed to focusing on the daily needs of your facility and growing your business. However, it is important to plan ahead to ensure a smooth transition when the time comes for you to leave.
THE RIGHT LANGUAGE
Any conversation about succession and exit planning involves the use of three terms which often cause confusion:
1. Succession Planning:
a) The ongoing process of developing ‘bench strength’ throughout your business and preparing your talented people for career growth and promotion. You can’t grow your business without growing your people. Every business needs a ‘talent pipeline’. Do you have one?
b) The second kind of ‘succession planning’ is preparing the business to operate without you, eventually and catastrophically. ‘Eventually’ means when you choose to leave ... and ‘catastrophically’ means if you get hit by a bus before you’re ready to leave.
2. Estate Planning:
This focuses on planning the dispo- sition of physical and financial assets during your later life and at death. It is the complex but very important process of working with experienced and trusted advisors including a business and tax law- yer, accountant, financial planner and life insurance professional. The cost of not getting this one right can be huge both financially and in family strife.
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