Published by Smith & Associates on March 7th, 2017
A hundred years seems like a very long time. From telegraph poles to Wifi, a lot has changed over the past century.
As hard as it can be to predict what the world will look like in a hundred years, you can still make plans that are directed towards leaving a lasting legacy, establishing core values, and setting your business up to continue growing in the long term while building talent and leadership in the next generation.
PLANNING FOR STABILITY
A few months ago, I spent part of the day moderating a panel in New York. As part of this panel of experts, we disused the importance of longer-term planning to create longer-term stability, both for the family and the business.
Very few businesses would (or should) take a major step without an annual plan. The annual plan offers detailed financial projections as to how the company’s financial and human resources will be allocated over the coming year. Some companies have longer-term plans_ two-year, five-year, or even ten-year plans. Beyond that, it’s anybody’s guess.
In the face of this, it seems a bold move – almost audacious! – to start planning where your business will be in a hundred years. But because family is at the core of your business, it’s in everybody’s best interest to start planning and preparing.
WHAT’S IN A 100-YEAR PLAN?
The experts at the panel discussion all agreed_ a hundred-year plan isn’t going to look like a one-year plan. A business can’t be micro-managed that far out, nor should you try. Any long-term plan, on the other hand, offers more of a statement of general strategic direction.
A hundred-year plan can lay out steps that you believe will take the family and the business in the right direction, helping drive vision and succession plans with a generational view.
STARTING THE CONVERSATION
It almost goes without saying, but the fact came up often during the panel discussion that it’s never easy to start this conversation. Face it_ it’s very hard for a successful person to imagine their own death. For some, it helps to picture themselves comfortably retired somewhere – enjoying themselves, but deliberately just a little out of touch, letting the next generation take over the reins.
I know even that can be hard to imagine, too, in this age of constant availability. Planning definitely isn’t an easy task, but it doesn’t have to be one you dread, either. If your vision for the business is to operate and for your family to flourish long after you’re gone, tackling it proactively is the only thing to do.
I believe in the saying, “Failing to plan is planning to fail.” A family business probably won’t fall apart overnight if the founder or founders can’t be at the helm. But if you haven’t set up the core vision and directions for the company’s growth and development, it’s anybody’s guess what might happen next.
I’d like to help you take the guesswork out of long-term, legacy, and succession planning for your family business. Feel free to get in touch at any time with questions you may have or to let me know how we can I help you, your business, and your family.
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