To say that the economy is bad is an understatement. The going is tough right now, and there is no denying it. How a business reacts to this environment and its own internal challenges are determined by its leadership. I see leadership in businesses reacting in many different ways, but the extremes of those reactions run from:
1) Ignore the problem, it will go away— 2) Benign neglect— 3) An honest to goodness willingness to make the necessary changes in the business.
It should come as no surprise that the reactions that fall between reactions 1 and 2 fail. It is only the last reaction that is likely to succeed. The commitment that is required right now is to work hard at seeing your business as it is currently being conducted, make the tough decisions to change appropriately and follow through with the changes. Do you have that type of commitment? Have you identified the right people to help you?
If you answer “Yes” to both of these questions, then get started!
If you answer “No” to the first of these questions, close the business, or sell it, while it may still have some value.
If you answer “No” to only the last of these two questions, invite your advisors and key managers to a meeting and let them help you design a plan to survive and improve.
NOW IS THE TIME!
Sign up for our monthly e-newsletter to stay informed on how to overcome related succession planning issues.