Lessons From Personal Experience

Why you need to start planning sooner than you think

by Sean Madden

Succession planning is one of the most critical, yet often overlooked, aspects of running a business. Why is this? Because too often, business owners delay thinking about the future because they’re uncertain about their next steps or feel they have plenty of time to get preparations in order. This isn’t always the case in a world where tomorrow is never promised. The best time to start succession planning was yesterday. The second-best time is today.

When I founded Madden Elevator, my vision was to grow a great company and eventually pass it down to my son. However, as time went on, it became clear that he wasn’t interested in taking over the business. Because I had already invested in succession planning, I had the flexibility to pivot, making an informed decision to instead bring in a business manager. That preparation ensured a smooth transition, both for my company and my family.

The Importance of Starting Early

One of the biggest mistakes entrepreneurs make is assuming that succession planning is something to figure out “down the road.” Planning for the future of your business goes beyond the transfer of ownership, and it’s your responsibility to ensure its long-term stability and success, even without your direct involvement.

I was fortunate to receive early training on succession planning through the University of Louisville’s Family Business Center. Additionally, as a long-time member of a CEO roundtable under Greater Louisville Inc., I had a front-row seat to the realities of business transitions. I witnessed both successful transitions and painful family conflicts. Seeing those experiences first-hand reinforced my belief that succession planning is a necessity, rather than an option, in business.

Having Flexibility in Succession Planning

While having a clear strategy is important, it’s just as crucial to remain flexible. When I started succession planning, my assumption was that my son would take over the company. That didn’t happen. But because I had prepared for different scenarios, I was able to shift my approach without scrambling.

Rather than force a path that wasn’t right for my family, I adjusted my plan and brought in a business manager to handle day-to-day operations. This transition allowed me to step back strategically, giving me more freedom to focus on what I’m most passionate about: teaching strategic planning and supporting other elevator industry entrepreneurs.

A Long-Term Process, Not a One-Time Event

One of the biggest misconceptions about succession planning is that it’s a single decision, rather than an ongoing process. This could not be further from the truth. Succession planning takes years to adjust, finalize and incorporate. You don’t need to have all the answers the moment you sit down to plan, but you do need a system in place that allows you to continuously refine your strategy. Here’s what I recommend:

• Start thinking about it now. Even if you’re years away from transitioning, begin laying the groundwork today.
• Surround yourself with the right resources. It could be a family business center, a CEO roundtable or industry-specific advisors. Having a network to guide you through the process is invaluable.
• Consider all potential outcomes. Don’t assume your children, employees or business partners will take over the business. Explore multiple paths and create contingency plans.
• Shift your mindset. The goal of succession planning isn’t an exit strategy. You want a business that can thrive without you.

While having a clear strategy is important, it’s just as crucial to remain flexible.

Protect Your Legacy

The process of succession planning is deeply personal. For many entrepreneurs, it’s one of the most significant decisions they’ll make. Your business represents years — and maybe even decades — of hard work. Ensuring its long-term success should be a top priority.

No one should be navigating their succession planning alone. Countless resources are available to help guide you, a few of which I’ve mentioned here. The key is taking your first step.

As Stephen Covey famously said, “Begin with the end in mind.” That doesn’t mean your journey will unfold exactly as planned, but by thinking strategically and remaining adaptable, you can set yourself and your business up for long-term success.

If you’re an elevator entrepreneur, I encourage you to start thinking about your next steps today. Maybe your goal is to pass your business down to your family, sell it or step into a different leadership role. Creating, implementing and reiterating a succession strategy ensures that your business and your legacy remain strong for years to come.