United States – Corporate and Company Law

In a recent video, Jeff Faulkner, co-founder of the International Succession Planning Association, spoke about the importance of succession planning for entrepreneurs.

United States
Corporate/Commercial Law

In a recent video, Jeff Faulkner, co-founder of the International Succession Planning Association, talked about the importance of succession planning for business owners. Faulkner emphasized that succession planning is not just about planning for someone’s exit or death, but about positioning the business to continue indefinitely.

Faulkner drew on the wisdom of Ray Kroc, the man behind the McDonald’s franchise system, quoting Kroc’s famous saying, “When you’re green, you grow. When you’re ripe, you rot.” Faulkner explained that entrepreneurs must continue to grow and not become “mature” or stagnant. This requires a deep understanding of where valuation begins and how to determine the value of a business.

Faulkner emphasized that understanding valuation is fundamental to finding out what a business owner is really interested in. This means looking beyond the superficial revenue and profit numbers and considering the intangible factors that make a company worth it, such as the team, the brand and customer loyalty.

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By taking a long-term perspective and focusing on growth rather than just exit strategies, business owners can position themselves for long-term success and leave a lasting legacy. Succession planning is not just about the present, but also the future of the business and the impact it will have in the years to come.

The content of this article is intended to provide a general guide to the subject. You should seek professional advice for your specific circumstances.