Art gallery entrepreneur extraordinaire Larry Gagosian assembled a team of prominent advisors to help him chart a course for his future, according to a NY Times story last month. I think his planning is admirable and makes a lot of sense. People that are sole owners of a business have a lot of issues to be concerned with, and succession should be near the top. I do not know Mr. Gagosian, but I want to use his efforts to segue into the importance of succession planning.
Many people who start and manage successful businesses view the business as an extension of themselves, and it is part of their identity. They are very bright, driven successful people. However, some do not want to confront their mortality. The truth of the matter is that we all will die, and a few will become disabled. Life doesn’t hand out appointment cards with your fate; it is something that just occurs.
Assembling an advisory board is a very effective way to provide for continuance and possibly a later sale when the owner dies or becomes incapacitated. It also is an excellent way to arrange for access to various experts to assist with the maintenance or growth of the business or an eventual exit strategy. I suggest that sole owners consider such a move.
Mr. Gagosian has created an empire, and I am pretty sure he has people that could step in and manage the business if the unfortunate occurs. However, I also know that there are many other businesses that do not have such a backup.
I previously posted a blog that discussed the consequences of a sole business owner dropping dead without a contingency plan and followed that up with a suggested contingency plan.
If you would prefer, I have included both blogs in a tool kit for a contingency plan for sole owners, as well as suggestions for businesses with more than one owner. I will email it to you if you send a request to [email protected] and put “Contingency Plan” as the Subject. No messages needed.
This is important and needs attention. My tool kit should help you get it done or at least get started!
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