What will happen to your business when you retire?
You’ve spent all your life building and growing your company. Make sure it continues to flourish even after you’ve stepped down as head of the business. You could do this by developing a succession plan.
Succession planning helps you identify the right people to lead your business once you retire or leave the company. It allows you to look at your business as a whole, revisit your vision, and set objectives to prepare the company for new its new leaders and owners. Furthermore, succession planning ensures a seamless transition of leadership with minimal effect on your business’s day-to-day operations.
Here are some details on succession planning to help you get started.
Who’s Your Successor?
Depending on the size and type of your company, your successor could be a relative or family member, your business partner, an employee, or a buyer.
Whilst it’s common for business owners to pass down their company to family members, consider the experience and skills you’d want your successor to have.
How Much Is Your Business?
Knowing the market value of your business could help you decide on the right price for the company should you choose to sell it.
Your business’s value may change over time. It’s essential to regularly revisit your succession plan until such time that you’re ready to put the plan into place.
What Is Your Timeframe?
Deciding on a timeframe gives everyone in your company time to set things in motion and accomplish essential tasks before you leave.
For instance, you may want to make sure that issues are resolved before letting your company transition to new management.
What Preparations Do You Need to Take?
Some things you may need to look into are:
– Any financial implications of transferring the ownership of your business
– Training for new leaders or employees
– Legal documents and procedures relating to the transfer of ownership
At Sutherland Reid & Farrar, we understand that developing a succession plan seems like hard work for some business owners. It is often the reason many put it off for as long as they could. The reality is, having a succession plan assures you that your business will continue to thrive no matter what happens in the future.
Do you need help developing your company’s succession plan? We are ready to assist you. Give us a call at 02 6752 9700 or fill out our contact form for more information on how we can help.
