If you want the next generation to keep your company growing, you need to apply the right financial analytics to it.
If you own a family business and you want to transition that business to the next generation, how do you ensure that generation succeeds?
Although family members are the people you might want to take over the business, they often aren’t ready to run the company in a way that not only succeeds in the short-term but also grows the company in the long-term.
A common cause behind this problem is how they manage finances. In many cases, the metrics aren’t even there for them to be able to do the right processing to improve the finances of the company and make it profitable. Another common cause is they don’t have the right people in the right positions.
Sometimes, the next generation simply can’t run the company without the management team that isn’t family. That management team has perhaps been in the business a long time and, although they’ll never own stock, you have to hang on to these people because they’re talented and the next generation isn’t ready to take over certain positions.
In today’s marketplace, there are all sorts of different programs designed to help you understand how to train and develop your team, but what’s missing from these programs is the right financial analytics that need to be applied deep within the company to know where the pain points are and where money is being lost.
That’s where we come in. At Nabity Business Advisors, we not only help you analyze your organization and put together the vision that holds everyone accountable, but we have the people who can go deep inside the company’s finances to find out where money is falling through the cracks and what needs to be improved. This way, you can make good decisions on how to manage the company and make sure you have the right people in the right positions.
This is critical because, if a new generation is buying out the company from the founders or the first generation, then that previous generation will be getting installment payments from the new one. If the company isn’t successful, it could be a big problem down the road.
So if you find yourself in this situation, give us a call and we’ll go deep into your organization and it’s finances so that you become as profitable as possible moving forward.
If you have any other questions about this topic, feel free to reach out to me as well. I’d love to speak with you.