Rock LaManna06.25.19
In my work, I talk to many owners who are in a long process of transition or retirement. They do not have a defined exit plan or timeline. Their work situation can be described as half-in-half-out.
Some of these transitioning business owners have been half-in-half-out for years.
I can tell you this is a dangerous place for companies. You see, a half-in-half-out owner can inadvertently undermine company morale and performance -- and even put the company at risk.
Here are a few examples:
1. Employees may feel insecure about leadership and company stability. The best employees might jump ship rather than worry about the future.
2. Banks and underwriters may be concerned about who’s really at the helm. They might change the terms of your financial relationships or ask for personal guarantees.
3. A bookkeeper or bad character may embezzle or steal because no one is paying attention.
4. An acting manager may make major decisions without feedback or approval, usually to avoid pushback.
5. Customers may believe the company is out of control, especially if there’s not an empowered manager on site.
If you have been drifting, it’s a good idea to meet with a qualified advisor to evaluate your current situation. At the very least, you will want to update your business valuation, review your exit strategy, discuss your ideal future, and lay out a realistic timeline.
Half-in-half-out is a half-baked way to run a business. Once you have a solid plan, you'll be able to move forward with confidence.
Rock LaManna has helped owners operate more profitably from a place of empowerment and integrity for 35 years. Buy-Sell-Grow… Let’s go! Email Rock@RockLaManna.com to inquire about services or start a confidential discussion.
- They have hinted at retiring or selling the business, but their spouse and family members are not sure when that will be.
- They still have the corner office, but they show up only a few days a week.
- They sign checks and approve financial decisions, but they are increasingly out of touch with customers and day-to-day operations.
Some of these transitioning business owners have been half-in-half-out for years.
I can tell you this is a dangerous place for companies. You see, a half-in-half-out owner can inadvertently undermine company morale and performance -- and even put the company at risk.
Here are a few examples:
1. Employees may feel insecure about leadership and company stability. The best employees might jump ship rather than worry about the future.
2. Banks and underwriters may be concerned about who’s really at the helm. They might change the terms of your financial relationships or ask for personal guarantees.
3. A bookkeeper or bad character may embezzle or steal because no one is paying attention.
4. An acting manager may make major decisions without feedback or approval, usually to avoid pushback.
5. Customers may believe the company is out of control, especially if there’s not an empowered manager on site.
If you have been drifting, it’s a good idea to meet with a qualified advisor to evaluate your current situation. At the very least, you will want to update your business valuation, review your exit strategy, discuss your ideal future, and lay out a realistic timeline.
Half-in-half-out is a half-baked way to run a business. Once you have a solid plan, you'll be able to move forward with confidence.
Rock LaManna has helped owners operate more profitably from a place of empowerment and integrity for 35 years. Buy-Sell-Grow… Let’s go! Email Rock@RockLaManna.com to inquire about services or start a confidential discussion.