Remember the old movie, The Illustrated Man with Rod Steiger? The book was based on Ray Bradbury stories. In the movie, the main character Carl was covered in tattoos from head to toe (not so unusual today). People who looked into his tattoos(illustrations) would see the future.
Carl didn’t have a good strategy that would allow his business (or hobby) to survive him. Once he passed on (or retired), so would his practice of fortune telling.
Mike Periu could have given Carl some good advice in 4 Ways to Make Sure Your Business Outlives You. In his article, he really sets out points that can be a part of a strategic plan:
- Prepare a written succession plan
- Document all important procedures
- Gradually turn over control of key relationships and duties
- Purchase a life insurance policy
These are good points, but they contain a hidden fatal assumption, which is that your small business can actually be transferred to another owner. Many small businesses, especially in the service sector, are really the owner’s alter ego. In other words, customers buy from these types of businesses because they want the skills of the owner, not the business. You can see these in the professional arena like doctors, and obviously in the artistic world like acting.
However, it doesn’t have to be that way. Take Oprah, for example. If she restricted her business strategy to acting or performing as a talk show host, then her product would only last as long as the tape plays, or reruns. However, she leveraged her talent to produce other programs and the “O” network. Arguably, the “O” network will continue after she stops working.
But what about a small business? Does it stop existing when the owner retires? That is up to the owner. If the owner of a small business restricts the development of others in the company, then he will restrict the marketability of the company when he sells.
An owner must delegate in a planned manner with a vision. If the product or service requires the owner to personally be involved in all aspects, then the small business owner must use that “talent” to leverage other products or services that do not require the owner’s hand-holding. Once this is found, then a strategic plan can be developed and implemented. Then, the fort points offered in Periu’s article can be incorporated into the plan.