Robert Balentine, Chairman of Balentine and author of First Generation Wealth, understands the barriers to succession planning for business owners. Balentine believes that confronting one’s mortality and ego play a role in preventing succession planning. He identifies two types of business owners: the lifestyle leader who focuses on cash flow and may sell the firm, and the growth mindset leader who invests in the business to propel it further.
Balentine emphasizes the importance of succession planning in creating value for a company. It provides peace of mind for employees, signals to clients that the company is built to last, and showcases a deep bench of leadership. By planning for the future leader of the business, owners can shape the trajectory of the company and ensure continuity beyond their own time horizon.
Choosing the right successor is crucial for the success of the business. Balentine suggests that internal candidates are often the best choice for succession planning, as they are known entities who have climbed the ranks and are trusted by the team. External candidates can be a good option if they are a strategic and cultural fit for the company. The goal is to create a management team that gives the founder peace of mind that the business will continue beyond their departure.
Balentine believes that succession planning is the best legacy a founder can leave for themselves and future generations. By investing in the future of the business and choosing a successor, founders can ensure that their company will endure beyond them. Balentine emphasizes the importance of creating value in the world and building a business that will last for generations to come.
Forbes Business Council is recognized as a growth and networking organization for business owners and leaders. Balentine’s experience and insights on succession planning offer valuable guidance for entrepreneurs looking to secure the future of their businesses. By adopting a new mindset and considering the long-term success of the company, founders can ensure their legacy and create a lasting impact in the business world.
