The son of a good friend of mine is embarking on a music career, and one of his songs is called “We’re All Gonna Die.” OK, it’s not the most upbeat thought ever, but it’s a reality at some point. Are you ready? Is your agency ready?
Embrace the wisdom of “Succession,” the wildly popular HBO+ series that unveils the meticulous orchestration of leadership transitions within colossal corporate empires. While your enterprise may not rival the grandeur of a Logan Roy conglomerate, rest assured, you need a plan!
Make Your Plan
Your travel agency is a tangible asset, likely built on your blood, sweat, and, yes, tears. There will come a time when you cannot run your agency, or perhaps you no longer want to run it. I have seen entirely too many agencies simply close when the owner was done, essentially tossing away a lot of value. Think about a future without you. Do you have children that might like to take over? A close friend? A client? Or do you just want to sell it? Each will need to be handled differently, but if you have a basic plan, you are well on your way.
Do It Now
You have dozens or maybe hundreds or thousands of clients relying on you and your advice. Some may be traveling right now. Some may have left deposits with you. You owe it to them to provide that service regardless of your exit strategy. If you were incapacitated, who would handle the work? I have always been a big fan of partnering with a frienemy for this. Draft an agreement laying out exactly what the expectations are in terms of handling all existing clients (I usually go with a 25% of commission and fees) and new clients in your absence (I go the opposite and let them have the client, but I get 25% of commissions and fees of any business written while they are handling my affairs). Specify the duration and be sure to terminate it in the case of your death when your personal representative (or executor) steps in.
And it should go without mentioning, but documentation is critical. We are mostly online now, and our business lives live in this mythical cloud. There is no reason that all documentation is not associated with every transaction, from sales to bank statements to conversations with suppliers. If you are not a document fiend yet, become one. Believe me, it has saved my butt a few times and will save yours.
Don’t Go It Alone
It sounds morose, but agency owners have been dying for nearly a hundred years. The concept of a succession plan is not new. Tap into the resources available to you. Speak with your attorney, accountant, and financial planner. Get a business broker to value the agency.
In conclusion, succession planning is a required task in any business. At times it may be uncomfortable, but as my friend’s son AJ says, “We’re all gonna die.”
