You have invested countless hours in developing your company, so it doesn’t make sense to hand it off to someone unless you are certain he or she is properly prepared for operating it. It doesn’t matter when you plan on turning over your rental business to someone else, you still want to be certain your baby continues to thrive. Even if you no longer have a positive emotional attraction to your company, you would be wise to protect your investment by doing all you can to smooth the transition to the new leader or leaders.
Some of the rental business owners I work with are eager for the day when they no longer feel the pressure that goes with running a business. Others want to stay involved in the business but they want to do other things outside of it and yearn for the freedom to do as much or as little as they wish. Many rental business owners never want to give it up completely but want to transition the day-to-day operation of the business to someone else when the time is right. Most of the rental business owners who have had me assist them to plan and implement growth and organizational strategies still have plenty of rental energy flowing in their blood.
Preparation is key
Preparing the next generation now for a successful transition is important. Some rental business managers are not effective leaders and many lack critical delegation skills. It would be wise to have a structured management training process to prepare the company’s leaders to successfully operate and grow the business instead of just handing them the reins. This training is vitally important to make the transition successful.
Some managers have the potential to be effective leaders but haven’t had the formal, higher-level management foundations training. Many rental business owners know that their managers lack critical management skills and some feel that investing in their manager’s education is well worth the investment.
I have found that conducting training for a rental company’s managers at that company’s location is a wise strategy. Managers need the structured, specific-to-their-company education that empowers them to plan, organize, direct and control in a much more effective way. Managers, for example, need to learn how to delegate effectively along with a wide variety of the duties you want and need them to be proficient in. I have also found that one of the primary reasons that some rental business owners are feeling “stressed out” is that they are handling far too many of the day-to-day operational issues that should be handled by properly trained managers.
Managers also need to learn to become great leaders and to become proficient in the areas of employee hiring, delegation, motivation, training and supervision. It is important to have an experienced objective rental business consultant and rental business leadership trainer analyze your existing staff and make recommendations. It is very difficult for a rental business owner to objectively analyze the leadership skill level and the potential for those in their own company – especially people who they have known for years. Sometimes it is difficult to uncover the possibilities when one is in close daily contact with the people.
Effective delegation and leadership training have a profound and lasting effect on the growth and profitability of a company. Delegation and leadership training will help you (and those who work for you in supervisory positions) to prepare for the handoff of your business – and this training will make your business become much more profitable and enjoyable.
So again, don’t take your hands off the wheel unless the new driver really knows how to drive. Sometimes the heir-apparent candidate has plenty of rental experience but not the skills needed to lead the company. It is possible that the potential candidate was not properly “vetted” or just needs appropriate, intensive training.
Good timing consideration
The year 2015 was a fabulous year for my customers and might have been for your rental company as well. It is much better to consider transferring the company when revenue and profits are in a solid upswing rather than in a downward spiral. So it would be wise to start to prepare now.