Hardware Retailing

MAY 2018

Hardware Retailing magazine is the pre-eminent how-to management magazine for small business owners and managers in the home improvement retailing industry.

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HARDWARE RETAILING | May 2018 26 Trends Finding the Next in Line for Your Business What will happen to your business when you're no longer able to run it? The recent Succession Planning Study from the North American Retail Hardware Association (NRHA) takes a look at how independent retailers are dealing with the succession planning process. NRHA surveyed 233 owners, managers and other employees to learn how operations are preparing to make ownership transitions. The study found that less than 30 percent of participants currently have succession plans in place. This lack of planning is risky for business owners who are nearing retirement, needing to sell their business or facing disaster, particularly if they have not trained the employees or family members who will transition into the role of owner or manager. Source: 2018 Succession Planning Study, NRHA 0% 10% 20% 30% 40% 50% 60% 70% What did the involved parties do to prepare for the transition process? How could the involved parties have been more prepared? If you have a succession plan, who was chosen to be the successor? Only the top three survey responses have been included. 62.3% A Family Member A Staff Member Who Is Not Family 15.0% We Will Actively Look for Potential Buyers 9.4% They met with an attorney, accountant and other advisers to develop a plan. The incoming owner shadowed managers and trained in all areas of the business. The incoming owner worked with the exiting owner to go through inventory. They could have researched more about the succession process ahead of time. They could have consulted a coach who had been through the process before. They could have involved more accountants and attorneys.

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