Succession Planning in Owner-Managed Businesses

Owner-managed businesses have grown in popularity over the years since technology has facilitated the setup of a business and the delivery of services. Many of these businesses were set up by a person with a vision and possibly with a particular skillset. Throughout the growth of many of these businesses, one sees the organisation grow around the owner in such a way that new staff were typically engaged to carry out tasks that would then free up the owner’s time to do more rather than for their ability to think, analyse or take decisions.
The result of this type of approach enables the owner-managed business to grow to a particular size and scale yet it then hits three main obstacles:

  1. The business struggles to grow profitably beyond this size;
  2. There is a full dependence on the owner for any sense of
  3.  direction, growth, innovation and strategy;
  4. The complete dependence on the owner leads to a threat to the business’ existence into the fu
  5. ture since younger family members do not necessarily intend or have the appropriate skills to take over the business.
Working with such owner-managed businesses, CMG Consulta engage with the owners to understand their personal objectives for the business and for themselves. This engagement then leads to a shaping of the vision and strategy for the business. Here the foundations would have been laid for a structuring programme and a succession plan that prepares the business for owner succession and organisational restructuring. This structuring and succession planning takes many things into consideration from company ownership and family matters to operational aspects and day to day decision making. In working with the owners to implement this succession strategy, CMG Consulta also guide the owners through the change management processes and planning required in order to ensure that the business transitions smoothly to the state intended by the owners.
The end results of CMG Consulta succession planning engagements tend to be life changing for the owners in that they tend to see improved quality of life, business growth and business longivity, all depending on their personal objectives for the business.