Germany's SME Owners Face Retirement Wave, Urgent Succession Planning Needed
With over 106,000 small and medium-sized enterprise owners in Germany planning to retire annually from 2025 to 2028, succession planning has become a critical issue. Entrepreneurs must consider three paths: maintaining the status quo, transformation with succession planning, or company sale. However, delaying succession planning risks the future of the entire company, not just the owner's life work.
Entrepreneurs should analyze their situation with professional guidance and emotional distance. An objective assessment of the company's status quo is the first step. If no future-proof succession is in sight, entrepreneurs need an exit strategy thought of early on.
Many businesses lack structure and clarity for a consistent transition in succession planning. Uncertainty, emotional overload, and fear of making wrong decisions hinder early succession planning. To handle this effectively, entrepreneurs can use tools like Trello, Asana, Monday.com, and ClickUp for project management and collaboration. Additionally, change management training can help manage transformation processes, covering fundamental models, instruments, success factors, dealing with resistance, and engagement organization.
A successful succession involves multiple dimensions and is not a singular event, but a strategic process. It should be considered an entrepreneurial process that considers the interests of all stakeholders.
Entrepreneurs in Germany face a significant challenge with succession planning. They must consider various paths, seek professional guidance, and use appropriate tools and training. By doing so, they can ensure a successful transition that considers all stakeholders' interests and secures the company's future.
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