When a firm changes hands, there is going to be turnover. I would love for all of our shareholders to stay forever, but that is unrealistic. Over time, as people change and the business changes, some people may no longer feel they fit in at a company the same way they did before. They may not be contributing the same things. That kind of turnover is very difficult because it might create the impression that there are good guys and bad guys at the table. Sometimes, the situation simply is what it is and it’s nobody’s fault.
Lastly, it is important to acknowledge how weird it is to be in transitional phases like these. Most founders are having a whole host of things happen to them simultaneously: They see a diminished role for themselves in their businesses. They are looking in the mirror and coming to grips with aging. They must gradually let go of a business that’s been a huge part of their lives. They are trying to figure out what this new life is going to look like, and wonder if they are still needed.
This is incredibly difficult. One of the reasons I sometimes cling to things that may not matter much is that I worry everything will unravel if I let go. Not the business—me. Working through these feelings allows me to get away from an “I deserve” mentality and more into an appreciation of change. I tell our clients that the only thing we can guarantee is impermanence; the same is true for us.
In any case, I am making sure to look both ways before I cross the street. Because even though succession planning is not easy, it is worth it.
Ross Levin, CFP, is the founder and chief executive officer of Accredited Investors in Edina, Minn. He can be reached at [email protected]