The Story of Lee Part 11
The Programme - Building Lee’s Future
After deciding to continue working with John, they both agreed on a programme that would focus on key areas to prepare Lee for a successful exit in five years. The programme wouldn’t be rushed, and it would focus on gradual, strategic improvements to build as much value into the business as possible. Here’s what they outlined for the programme -
1. Strengthening the Management Team
Leadership Development: John would help Lee identify the key strengths of his young management team and develop their leadership skills. This would involve formal training, mentorship, and gradually increasing their responsibilities to prepare them for bigger roles.
Delegation of Responsibilities: Lee would begin delegating more of his day-to-day tasks to the management team, giving them the chance to step up while reducing Lee’s workload. This would test their ability to handle more of the business without Lee’s constant oversight.
2. Systemising the Business
Documenting Processes: They would work on documenting all key business processes. This would make the business less reliant on Lee’s knowledge and create a smoother transition for whoever takes over—whether that’s the management team, Glenn, or a buyer.
Improving Efficiency: John and Lee would look for areas where processes could be streamlined to improve efficiency and make the business more attractive to potential buyers or internal successors.
3. Strengthening Client Relationships
Diversifying Key Client Relationships: One of John’s key recommendations was to make sure that the business wasn’t overly reliant on Lee’s personal relationships with clients. The management team would need to take on more responsibility for maintaining and growing those relationships, ensuring that the business wasn’t too dependent on Lee.
Securing Long-Term Contracts: Another goal would be to secure long-term contracts with key clients, which would increase the value of the business and give potential buyers confidence in its future stability.
4. Financial Health and Growth
Increasing Profit Margins: They would review financials and explore opportunities to increase profitability, focusing on areas where costs could be reduced or pricing strategies adjusted.
Building Reserves: John would guide Lee in building a financial buffer for the business, ensuring there were reserves to weather any market challenges during the transition period.
Valuation Reviews: Regular check-ins on the Fair Market Valuation would be conducted to track how the value of the business was growing as a result of these improvements.
5. Preparing for Different Exit Scenarios
Family Succession with Glenn: John would help Lee assess Glenn’s potential, should he get his life on track. This part of the programme would remain flexible, allowing for the possibility of Glenn stepping up but without counting on it.
Management Buyout: If the management team continues to grow and shows readiness, they would explore the logistics of a management buyout. This would include financial planning and ensuring that any buyout wouldn’t put Lee’s retirement at risk.
Market Sale Preparation: John would help keep Lee’s options open for a full sale by ensuring the business was prepared for a potential buyer at any time. This meant making sure the business remained attractive to outside investors or buyers.
6. Personal Transition and Legacy
Defining Lee’s Future Role: They would spend time discussing what Lee wanted his future involvement to look like. Did he want to stay on as a mentor or advisor, or was he looking for a clean break?
Legacy Building: This part of the programme would focus on ensuring that Lee’s personal and professional legacy lived on, regardless of the path he chose. John would work with Lee on how to embed his values and vision into the company culture so that even after he left, the business would reflect his years of hard work.
Timeline and Checkpoints
The programme would span five years, with clear milestones along the way to track progress. John and Lee agreed that every six months, they would conduct formal reviews to ensure they were hitting their targets and adjusting the plan if needed.
By the time Lee reached his exit window, the goal was for him to have multiple strong options—whether that meant passing the business to the management team, Glenn, or selling it outright—without feeling rushed or forced into a decision.
As they wrapped up their conversation, both men felt confident that this carefully structured programme would give Lee the control, clarity, and peace of mind he needed to navigate the next phase of his journey.