It’s all too common for independent practice owners to be so focused on the day-to-day running of their business that they overlook the practicalities required for growth.
In the early years of starting an independent practice all the energies of the owner are rightly focused on getting the business up and running and making it successful. Thoughts of future succession or exits through sale are not high on the agenda. However, the adage of ‘exit planning starts the day you open your practice’ still holds strong.
The best place to start in terms of succession planning is to create an exit strategy based on ensuring your business can run successfully without you. Here are seven things to consider.
1 Prepare
Start early to identify potential successors and groom them to step into your role. Involve your colleagues and, your boss and, in brainstorming about the critical skills, core competencies, essential knowledge and relevant experience your successor will need, keeping in mind that these criteria may be different than what you brought to the role.
2 Finances
Consider external funding to help to achieve your vision? External funding can assist not only from a financial perspective, but a minor investor may bring in expertise as well. For example, angel investors are likely to have substantial business and operational experience which the practice can benefit from.
3 Staff
Make sure you have the right people to drive the business forward? You may need to take on more staff and you may need to train your additional staff to handle the larger practice requirements. These issues can bring their own challenges but having the right people doing the right jobs is essential.
4 Skills
Identify and prepare successors for the key roles in your practice. Involve your colleagues in brainstorming about the critical skills, core competencies, essential knowledge and relevant experience key role successors will need, keeping in mind that these criteria may be different than what you brought to the role.
5 Collaborate
Make transition more collaborative and open so that the next generation feel they can make a difference and test their ideas. Listen to their passions and identify ways they can express them in the context of the business. See how the business can adapt to encourage their participation. For example, ask them to help you solve a technology related problem or run a social media campaign.
6 Plans
Create a framework to introduce potential next generation leaders to the business and manage the complex legal and emotional issues involved in transition.
7 Help
Be open to external expertise and consider belonging to a business club or network to learn from others’ experience. This can be hugely beneficial and is the staple of what independent optician business support organisations like SightCare do well.