Welcome to ASK ROCK, a monthly advice column where industry expert Rock LaManna will answer your questions on topics such as: key financials for business, and how it can lead to profitable organic growth, M&As, strategic alliances, succession plans, and exit strategies. He will also talk about leadership and present family business case studies.
Do you have a question for Rock LaManna and the LaManna Alliance? Submit it here.
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Dear Rock,
I’m nearing the retirement age (late 60s – where did the time go?) and my wife and my kids keep asking me when I’m going to retire. As an owner of a family printing business, it’s hard for me to just cut the cord and head out to the golf course.
I’m wondering if you know how to pull back on the ownership duties – I know I’m going to have to step aside sometime – but still be a part of the business? Is it possible?
I really wish people would stop viewing retirement as a black and white situation. It’s much greyer than that, and in ways beyond the hair color. Today, retirees – especially business owners – have more options than ever before.
As a family business owner, I’m sure your insight and wisdom are valued in the boardroom and on the printing floor. However, I also think that you should make the most of your golden years.
Handing off the reins to someone with more energy and drive gives you time to reconnect to your wife and family. It also allows your business to grow, as your children and/or succession team can bring new drive and perspective to the business.
You can still play a strategic role in leading the growth of your company, but from more of an advisory position. Here are a couple ideas about how to pull it off:
Retire with a reduced role. You may want to consider recapitalization, in which you sell your business but keep a minority stake. You’d adapt some type of diminished role, but still add your vision.
Hire someone to grow the business. It takes an incredible amount of energy to grow a business. You need to either invest a lot of time in R&D or hire a proven business development professional. However, adding staff and resources to business development allow you to spend more time quarterbacking the team and providing guidance. Be sure to provide generous incentives to your development team; you want to make sure they feel like they are building something they can be part of for a long time.
Bottom line: If you’re not ready to retire, then don’t. A diminished role might allow you to have your retirement cake and eat it, too.
Rock LaManna is the President and CEO of the LaManna Alliance, a business advisory and consulting firm that helps printing owners and CEOs use their company financials to create successful strategies. He blogs regularly about family business solutions for the printing and print-related industry.
