- John Mickelson, founder and managing partner Midwest Growth Partners, is IowaBiz's blogger on succession planning. Read more about him here.
On November 8, U.S. citizens went to the polls and voted for who they believed should be the next President. President Obama, who is ending his second and constitutionally mandated final term, will hand over control of the executive branch of the government to President-Elect Trump on January 20.
Wanting to escape from a monarchist system, our country’s forefathers’ setup this mandated transition of powers – which is just a big succession plan. This succession plan faces similar issues as you do as a business owner developing and executing a succession plan.
Here are some decisions that President Obama and President-Elect Trump may face, which are synonymous with what a seller and purchaser of a business might also face:
President Obama (Outgoing Business Owner)
· Legacy – feel responsibility to have work done continued and reputation held in high regard.
· Relationships – want to ensure loyal supporters are taken care of.
· Future for family – want to make sure family is financially secure, safe, and well-adjusted to a new environment.
· Time – figure out what hobbies, causes, and interests will occupy new found time.
President-Elect Trump (Purchaser of Business)
· Strategy – what did predecessor do that should continue and what should change?
· People – who should surround as trusted advisors?
· Systems – need to setup procedures and protocols that fit the newly assembled team
· Communication – clearly communicating a vision to different constituencies is important in first 100 days
If you are thinking about selling your business as part of a succession plan, a "transition team" just like President Obama and President-Elect Trump are using right now is vital to achieving your unique goals.