WHY IS IT DIFFICULT TO HAND OVER THE REINS?
Most planners have very sincere reasons for not letting go on a conscious level. However, there may also be many subconscious reasons that we are unwilling or even unable to articulate because of an inability to recognise them.
AN EMOTIONAL ROLLERCOASTER
If you are one of those planners who say they are never going to retire, you are definitely not alone. Like others you have devoted your career and the best part of your life to building and sustaining your practice; it’s your baby - you built it from the ground up. Preparing yourself emotionally for letting go of your business and loyal clients can be difficult and is often the hardest part of the process.
PUT YOUR SUCCESSOR IN A POSITION TO SUCCEED
You may feel that you will be abandoning your clients when you retire. You gave them great service and have been there for them through many life transitions. It’s important to remember that your business may have stagnated, and things have been the same for years. If you want growth and innovation to create a future-fit client value proposition, the right associate or successor can help you take your practice to new heights. You need to trust your successors and allow them to see the business as their own. If not, it will lead to frustration and successors may decide to distance themselves from the business. Successors need to know that their ideas are valid and can be implemented. If not, they will eventually just leave.
WHY WOULD ANYONE INVEST PASSIONATELY IN A BUSINESS WITHOUT BEING ABLE TO DETERMINE ITS DIRECTION?
You might also say that you enjoy working. Maybe you are not sure what you will do when you retire. You may still need to find your inspiration or meaning in life outside of work. Losing power and prestige, colleagues, connections and even respect is a big fear for many. While you may indeed be enjoying yourself, you may be obstructing successors from reaching their full potential in the business and starting to create their own identity.
Another reason may be that you don’t have a successor. Successors come and go and often it’s because of the reasons stated above. Maybe your business doesn’t offer the full range of knowledge and skills that the next generation requires. You need to make sure that you implement good processes and procedures for your business to be sellable.
Employ a business coach to help you do a gap analysis and help to turn your practice into a business that someone would be able to take over and manage with ease. Some planners even say that they cannot afford to retire. Most of the time this is not the reality. Despite having built adequate wealth, you may still feel financially insecure and find it hard to walk away from your lucrative business. That is why it is important to have a sellable practice that can still generate an income even when you step down.
FINDING AND TRUSTING YOUR SUCCESSOR
Finding someone to help you make the decision to step down would be a great start. Find a coach or mentor you trust to give unbiased opinions and challenge your assumptions. This person should not be associated with your practice. Separate your needs from the needs of your practice. Try and step out of your business and work on it with perspective and objectivity. Ease into the backseat. Try and transition from less of an ownership role to more of a mentor. It will allow you to stay involved with the business longer and ensure a smooth transition, which is good for your successor as well as your clients. Once you do step down, no matter what role, if any, you will continue to play in the business, it is important to let your successor find their own way of running things. Questioning why they are doing things differently than you will not help. You can always give some advice about steering the business if you feel it is necessary, but at some point, you have to take your hands off the wheel. Handing over your business to a successor is hard. Nobody really wants to admit that the day will come. However, don’t run your practice into the ground. Allow your successor to timeously take over the reins and continue the legacy you have built.