Many mom-and-pop contract cleaning companies that started years ago are now large corporations. In many cases, the founders of these companies are considering retiring and passing the company on to younger family members.
However, according to Ron Segura, president of Segura & Associates, who has worked with many cleaning contractors in this situation, the timing is crucial.
“The company founders do not want to stay too long, nor should they leave too soon,” he says. “Both scenarios can be bad for the company.”
To help find the best time to retire, Segura suggests company founders in all jansan organizations ask themselves the following:o
Are you still finding fulfillment in the job?
The excitement once felt for the company will diminish over time, but top executives should still be excited about their companies and the role they play. “If not, it is time to consider leaving.”
Are there personal reasons to retire?
“What I have witnessed is that often these top people enter a new phase in their lives and want to start something new. If that is the case, yes, they need to start transitioning the company.”
Is the industry changing so fast you cannot keep up?
This is a pervasive issue today. “For decades, the jansan industry changed slowly. However, now everything is changing very fast. It the founders find they cannot keep up; a change in leadership may be due.”
Have you been offered a new opportunity?
Older executives are often in demand to teach, take a government position, or join another company in an entirely different field. “Many older executives find they cannot resist these offers. Money is typically not the reason. It is the opportunity to serve and give back to their community that pulls them forward.”
Has a succession plan been worked out?
Founders need to start selecting family members that best fit leadership roles in the company and grooming them early. “I suggest the mentoring process start at least five years before the transition.”
Another situation Segura says he often encounters is founders want to leave after reaching a significant milestone.
“Some wait until they secure a major new customer, for instance. They want to leave the company when its strong and have something proud they can pass on to younger family members.”