Don’t Go Back to Normal
Returning to the “normal” version of your business may limit your future.
After the unexpected loss of an owner the right step is to regain stability. Protect customers, employees, keep operations going, don’t make any major reactive decisions. After a while, the crisis starts to pass, and things may start to feel like they are getting back to normal again.
But is that “normal” a desirable state of being? That prior state of normal may have been the problem. Many companies evolve with their founder/owner(s) over time, and until something occurs requiring a change to the “status quo,” the business can exist in a state in which…
- too many decisions are dependent on one person,
- too many customer relationships depend on one person, and/or
- too much operational knowledge lives in too few peoples’ heads.
The business may have appeared successful while important weaknesses were hidden beneath the surface. When a river is running high, the rocks underneath are easy to miss. The current keeps moving and no one feels urgency to change course because the obstacles remain well underwater.
After the loss of an owner, the water level drops. What was hidden becomes visible – leadership gaps, operational weaknesses, customer dependence, financial inconsistency.
The rocks were always there. The business just had enough momentum to move over them.
Now the path forward has changed. This is not the time to force the company back into the same channel that created the exposure in the first place. The newly exposed obstacles require a new course.
For that new course, it is time to ask some hard questions with a fresh perspective:
- What are the company’s real strengths and weaknesses?
- How dependent is the business on key individuals?
- How does the company compare to industry standards?
- Is the business truly transferable?
- Is it positioned for long-term growth or optimal value?
- Does the leadership team have the desire and ability to carry a value-building plan forward?
Major improvements to a company are not easy and not quick. The first step is to determine what the future direction of the company should be. Should it refocus on certain market segments? Invest in new technology? Who can help the owners determine what needs to change? Changes will require investment, outside leadership, or a new partner. The good news is that the strongest companies use periods of disruption to find clarity and to become stronger and healthier.
The result: a transferable, scalable, dynamic company prepared for any next phase to go forward including succession, transition and/or profitable growth.
If you would like to discuss your situation on a confidential basis, please call me (Alison) at 224-688-8838 or email me at [email protected]. We’re here to help you Harvest Your Potential.
