10 Pitfalls to Avoid with Succession of a Family Run Business

I love when calendar quarters end and new ones start! We follow the Traction program (Entrepreneurs Operating System – EOS – by Gino Wickman). It is an effective way to run your business. The program involves setting a vision and breaking it down into ten, three, and one-year plans. 

Each quarter, you say what do the people in my company need to do this quarter to achieve the one-year goal?


In order to do this, I pull out a Key Performance Indicator tracker spreadsheet I keep for the year. I open my P&L, Balance Sheet, and Cash Flow reports. I track the top-line production and each revenue producer – by department/business line and by producer.  I enter data on a graph and assess the trends. The benefit to doing this as you go, quarter by quarter, for example, is that you can course-correct during the year.  

Economic conditions can alter a business’s revenue and our business is no exception. In fact, our revenue is a leading indicator of the economy, albeit a microcosm! I look ahead and ask, how will changes in revenue affect our profits? What forecasts can be made? What decisions for making cuts may be necessary? When might a credit line be required for access? On the other side of the coin, what investments do we need to make in adding new people and resources?

I use this information to update our annual Strategic Growth Plan. Your exit and succession plan should also incorporate your current strategic plan. EOS has a tool that you can use to document your ten-year vision, 3-year plan, and one-year strategic plan.  If you would like us to send you this worksheet, please let us know.  


Exit planning is simply good business planning!


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Edina, Minnesota 55439



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