Succession Planning – Keeping What You Catch!

Did you know that ninety percent of the 21 million US businesses are family owned – And that only thirty percent of these family run companies succeed into the second generation -- with only 15 percent survive into the third generation (Source SBA.gov)...

When asked about the keys to success, the Survivors all agree that having an orderly ‘Succession Plan’ was their primary success factor.

Unlike the purely commercial market, Government Contractors (‘GCs’) face a different set of challenges as they move through their Business’s Lifecycle (i.e. from Start-up to Emerging SB – & Emerging SB to Other Than Small Business). These unique differences require GCs to establish and implement functional Succession Plans for multiple ‘Critical Inflection Points’ within the Lifecycle of their Business Models.

Andy Grove (Intel’s Co-founder) defines a business’s Critical Inflection Point (‘CIP’) as “the stage in a Business Model’s Lifecycle where Value Inflow intersects Value Outflow (see above example). It is at this intersection that the successful business implements its Succession Strategies. This targeted implementation produces a new season of Value Inflow for the Core Business Model.

Said another way, at the CIP, the GC engineers and implements a set of Business Model changes that literally creates a new demand pattern and market opportunities for the business.

For example, a SDB secures 8(a) Certification – a WOSB secures a GSA Schedule – a SDVOSB secures a Mentor under DoD’s Mentor Protégé Program – a SB secures a JV with an in-demand preference owning SB (i.e. HubZone, SDVOSB or 8a)...etc.

Here is the $100 Million Dollar question – as a Federal Contractor – what is your Succession Plan?

My recommendation is that you consider the following:
 When You Are In The Start-up to Emerging SB Phase – Implement SB to SB JVs – [Produces an instant capability, capacity & past performance that immediately qualify you for Contract Award.]
 When You Are In The SB to Graduated SB Phase – Implement GSA’s Contractor Teaming Arrangement (‘CTA’), & a Protégé Strategy (e.g. DoD &/or SBA) – [Produces the agility & scalability needed for the acquisition of material Consolidated or Bundled Contracts.]
 When You Are In The Other Than SB But Not Yet Truly A LB Phase – Proactively implement SB Mentoring, CTA & BPA enabled ‘Landscape Capture’ strategies – [Produces a Contract Award mix that includes highly differentiated SB Contracts that will deliver a 49% performance and profit value to the LB.]

Given the unmet intent of the Small Business Act (i.e. Maximum Practicable SB Utilization); you are in a good position to use Succession Planning as a powerful tool for leveling the Contracting playing field.

This is not to suggest that it is easy to become a successful Other Than SB Contractor. What I am attempting to pointing your attention to is the fact that – based on empirical evidence – success is highly unlikely without good old fashion planning…

Therefore, my interest is focused on helping the Members of the M_P_U_ Network produce these maximum-value strategic outcomes for their businesses. Some would say that I am sharing the ‘Secrets of Successful GCs’ – and they would be right, as these strategies are culled from the common key-learnings and best practices that are employed by my Firm’s most successful Clients.

That said; I have taken the following steps to make it easy & cost effective for you to start the process of adding these strategies to your Tool-Kit:

1. I have placed a Free video on the M_P_U_Network that provides a comprehensive introduction to Joint Venturing (see: Joint Venturing 101 under Videos).

2. I Created an e-learning version of the Nation’s Best Selling Advanced JV Training course – a $5,000 value that Network Members get for $500 (see: JV Solution Now $500 under Forums), and finally

3. I am providing Network Members a 25% discount on my Firm’s Hourly Rate for Coaching & Advising Services – for those that need a little implementation assistance (see: http://stores.homestead.com/hstrial-WCottonIII/-strse-1/JV-Coaching...).

Ok –Let’s review…

You
Walter Cotton III
Founder
M_P_U_Network
now know the importance of Succession Planning, you have a good understanding as to the proper structure of a quality Plan and you have a cost effective way of bring this strategy into a relationship with you business.

It’s in your hands now – long-term success is just a few mouse clicks away!

Continued Success,