To ensure the long-term success of a business, it’s crucial to put a plan in place for the next generation. That plan should be flexible, transparent, and true to the specialty food business’ values. Harry T. Jones, business coaching specialist at Cultivating Impact, will discuss the potential pitfalls, and remedies, in order to build a plan for succession success during SFA's In the Know webinar. “Seven Pitfalls to Avoid in Succession Planning,” taking place this Thursday, December 1, at 1 pm EST. Register now.
SFA News Daily spoke to Jones about the topic.
Does succession planning in the specialty food industry look different than in other industries?
Yes and no. Our general framework applies to most organizations. Specialty food companies have an even greater need for innovation, the identity of the founder with the brand, and responsibility for food safety/nutrition.
What is the biggest mistake specialty food businesses make when transitioning power?
Starting too late. Often, entrepreneurs think that continuity planning is too complex and takes too much time; we have some simple frameworks to share. Seventy percent of all businesses fail to make it to the second generation of leadership.
When should a business start to consider planning for the next generation?
When the business starts; at least when the founder realizes the business will survive into another generation.
Words of advice: the best time to plant a tree is twenty years ago; the second-best time to plant a tree is today.
What is one piece of advice you would give to a business hoping to transition power?
If the founder has not recognized the need to develop a team to continue the purpose, the next generation may have to lead the conversation: there are at least 14 questions to fuel the succession planning conversation and we are glad to share these with the SFA community.
Typically, who are the key positions and people to include in a discussion of this magnitude?
The founder/CEO, next generation of leadership, board of directors, owners, and trusted advisors all should be included in the discussion.
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