Part Two: Developing the Next Generation of Leadership

In my last post, Part One: Developing the Next Generation of Leadership, I talked about the importance of business leaders and entrepreneurs facing the inevitable and planning for the future. Business owners will not work and live forever, so it is crucial to work with and mentor the next generation of leaders. Let’s face it, if you are not moving forward, then you’re moving backward. The next thing I think all business leaders need to keep in mind is the need for knowledge capital. Businesses need fresh ideas and additional hands to implement things. It is important to bring in someone with a higher degree of leadership management skills, strategic ideas and the ability to implement them.

What I think most entrepreneurs are missing is that they believe they have to hire leadership talent; however, that business model isn’t the same as it used to be. If you go back five to ten years ago (prior to the recession) businesses that wanted top-notch strategic talent had no choice but to hire and put that talent on their payroll. Many things have changed in the last five years, and I contend they are never going back. We have a new normal. The new normal is a tremendous amount of knowledge capital available to business owners to help implement strategic initiatives without adding payroll expenses. You can reach out and find people that have done this before. These days, you can contract out top talent, assign them key projects, and give them solid strategic initiatives that will take your business, not from A to B, but from A to Q. This strategy will move your business faster, further and quicker simply by getting talent that’s already proven that they can do it.

There is a wealth of top-notch talent available out there, so I think business owners need to approach things differently each time they are looking to hire. When you use someone’s knowledge capital, it doesn’t have to come attached to a W-2. This can be contracted outside talent, and it’s available now. Here are three key things business owners must do in preparation for the inevitable:

1. Prepare the next generation
2. Bring in fresh ideas and people who can help implement them
3. Have a plan for retirement

It is important to change the “work forever and live forever” mentality; the thought process of, “I am never going to retire, so I never have to plan for retirement.” The reality is that the market in the last year or two has completely changed that role. Business owners, you owe it to yourself, your family and your legacy to not just prepare the next generation of leaders and look at acquiring talent differently, but also to look at planning for your own financial future. Have a plan. Make sure that it’s documented, and make sure that it’s well thought out. Make sure that you’ve spent the time to think through, “What is life going to look like when I am not working 50-70 hours a week as the founder of a business?” The average lifespan is now 82 for women and a little less for men. We are going to live another thirty to forty years. Take the time to think about how you are going to plan for that future.

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