To say I’m
not a graceful runner is an understatement. While I may not be much of a
runner, I am stubborn, competitive and determined. I also enjoy a good
challenge, so when I saw the Warrior Dash was coming to Afton, MN this year, I
didn’t hesitate to sign up. After months of training and prep work, race day
was here. The first 200 yards went as planned, and then came the first unexpected
obstacle. That’s right; this one was not on the list. We had to run from the bottom
of the ski hill all the way to the top. And then back down. And repeat again,
and again. I don’t know how many hills and wrenches were thrown my way that
day, but I’ll bet my thighs could tell you.
Regardless,
I managed to power through and finish the race within two minutes of my goal.
Did it go as planned? Not exactly. Did I consider it a success? Absolutely. I
had mentally and physically prepared to finish the race, and that’s what I did. Even though it wasn’t perfect, all of that
preparation paid off and I was able to cross the finish line. After the first
hill, I had to adapt and switch gears. In a perfect world, unexpected hills and
twists would never happen. In the real world, you need to be practical and
realize that things won’t always go as planned. If that sounds a lot like
running a business, it’s because it works the same way.
I’d guess
that when you took on the challenge of starting your business, you had a
general goal in mind on where you wanted it to go. That goal probably didn’t include
working every day for the rest of your life. By being flexible and creative,
you persevered to get where you are today. As you’ve had to switch gears, it
can be easy to forget to do so in other areas too. What does your final game
plan look like? Are you so caught up in the day to day that you haven’t spent
any time on your exit strategy?
Succession
planning is a talent and organizational improvement initiative that enables an
organization to grow and thrive now and in the future. Having a clear picture
of the future of your business will allow steps to be taken now to ensure the
future success and direction of the company. Your business can neither succeed
nor grow without a clear understanding of how the business will continue after
the departure of key leaders of the business, including yourself. Not only is
it imperative for the long-term success of your business, but I’d assume you
want to make sure you’ll be getting paid for your investment when you retire.
Succession planning
isn’t limited to retirements only. Think of your critical employees, yourself
included, and how your business would be affected by their loss. A life
insurance guy would talk end of the world type stuff, but let’s consider more
likely scenarios – disability, retirement, moving away, joining a competitor.
Life and Disability policies are available for two risks, but for the others
it’s critical that a backup plan be established that includes cross-training
your employees. Good planning is good business, and failing to do so could put
your future and the future of your business in jeopardy. Succession planning
should be part of a broader enterprise risk management plan. That’s right, not
just insurance risk management, but a holistic approach to address those risks
you can’t insure for. If your broker isn’t helping you with this already, it’s
time to find someone that will.
Flying by
the seat of your pants has a time and a place for certain things. Solidifying
your future plans and protecting your business does not make the list. If you
haven’t already done so, now is a great time to start as you make your dash to
the finish line – your retirement.
Andy Bertram CPCU, ARM-E
651-800-6173
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