As calls for Rupert Murdoch to step down in the wake of the News of the World phone hacking scandal continue, experts suggest businesses use the calamity as an example of the need for a solid succession plan.
CEO and Founder of business re-development company Teach it Forward Trent Taylor said most people go into business to make more money, free up their time and leave a legacy for their family – but few formally plan how to do this.
“Business owners want to create a great lifestyle for their family but never plan for how the business is supposed to work so this can become a reality for them.”
“Are we witnessing this right now playing out in the Murdoch family, as his children from three different partners compete for top dog status?” he added.
According to Taylor, without a succession plan businesses deliver sporadic or inconsistent results the owners cannot rely upon.
“It is when you need the succession plan the most (in crisis), that it hurts the most … every business and every human being needs a solid structure or solid spine to be able to function properly over a sustainable period of time.”
Taylor said some keys areas that a succession plan will uncover are:
- The real amount of time that you spend on/in your business;
- The lack of time you really spend with your family or doing the things you love;
- What your true assets and liabilities are;
- What cash is really moving through your life;
- What cash the business needs to give you as the owner; and
- Your true net worth.
“I see so many business owners who are chasing more money, more freedom and more freedom of choice but in reality they are more removed from that goal than ever before.”
“Alignment is a must between you and your partner, you must do your succession plan together. If you are both aligned your business and life will be more enjoyable, you will not regret it,” he added.