What is Succession Planning?
Succession is what happens to your business when you ultimately decide you want out.
Planning your succession allows you to transition your business to new ownership in a managed and systematic way, helping you to reduce stress and achieve a greater outcome at a potentially tricky time.
Succession Planning is about clarifying what you want for the future and defining the steps required to turn that vision into a reality, while taking into consideration business, personal, and family expectations.
Planning for an owner’s inevitable exit from a business is too often left to the last minute, strongly impacting the size of the nest egg. It’s crucial to consider Succession Planning as an important aspect of your overall business strategy that requires regular reflection and ongoing development.
As a business owner, do the following questions weigh on your mind?
- Would your business be unable to cope without you?
- Do you worry about recovering your investment (and more) when you exit?
- Are you concerned about the expectations your family may have for your business?
- Do you have clear expectations and goals for life beyond your business?
- Do you know what’s required to support your lifestyle after you’ve exited your business?
Perhaps you’ve already identified your successor.
There’s a big misconception that if your successor is poised to take over, you don’t need to plan. Be that a management buy out or a family member, there are a lot of expectations, logistics, and legalities to manage to ensure a smooth transition for everyone (including your customers).
Regardless of your situation, a carefully considered exit strategy will reflect the hard work and capital you’ve invested in your business and ensure strong foundations for the future.
We can help you develop your Succession Plan to ensure that the expectations of all parties are achieved. Get in touch If you’d like to know how.