At Asking Leader, we understand that succession planning can be an emotional journey for business owners, founders, and parents. It’s not just about stepping away and allowing the next generation to take over, but also about ensuring the continued success of the business. The first hurdle to this success is the first question.
Is the business creating surplus cash? This question lays the foundation for the next generation’s leadership and is a key determinant of the success of the succession plan.
The Essence of Cash Flow in Succession
Surplus cash flow is the lifeblood of a smooth transition. It’s not just about who will take the reins or how the pie is sliced; it’s about the financial viability to support the handover. Without a healthy cash flow, the succession plan is on shaky ground.
Starting with Financial Health
If the cash isn’t flowing, that’s where we begin. We need all hands on deck to restructure and drive the business towards generating surplus cash—those after-tax profits that will fuel the future.
Conclusion
Before delving into the details of succession, it is crucial to ensure your business’s financial foundation is built on solid ground. Surplus cash flow isn’t just a metric; it is a testimony to a business ready for its next chapter.
Ready to secure your business’s future? Let’s start the conversation today.
Connect with us: Mike Logan AM FABC | Kim Wethmar | Deanne Waldron
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