Succession planning is a vital process for any business to ensure it continues to be successful for years to come, whilst allowing the current owners/directors the ability to step back.
While there is no one-size-fits-all approach, identifying and developing potential successors for key positions within a business is an important part of the process, whether it is a smaller family partnership or a larger company.
So, when is the best time to think about succession planning? The answer is as soon as possible to ensure a smooth transition of leadership for the benefit of the business, the successor, employees and customers.
How you approach succession planning will depend on the size of your business and the industry you are in and more personal factors such as your retirement plans and your family’s circumstances, and whether you’re considering passing your business down/selling it to individuals already within the business or outside of it.
Start succession planning as early as possible
Succession planning is not something that can be done overnight or in a hurry. It requires careful consideration of the needs and goals of all of the individuals involved and the earlier these conversations begin, the more successful the outcomes are.
Allowing enough time to prepare the successor(s) for the responsibilities and challenges of running the business provides the opportunity to implement the necessary changes and adjustments to the business structure and operations.
Planning ahead also allows for more time to assess the feasibility and suitability of any changes, and to make any further changes if required.
Starting early does not mean that everything has to be decided or finalised right away. Succession planning should be an ongoing and dynamic process that should be reviewed and updated regularly, based on the changing circumstances and preferences of the family and the business.
Successful succession planning
The key to successful succession planning is to have open and honest communication and to consult your accountant and solicitors. They can help facilitate the discussion, provide guidance and information, and offer solutions and alternatives to the potential issues and conflicts that may arise.
By thinking about succession planning early and regularly, you can ensure that your business is in safe hands for the future, and that your successor is well prepared and supported for the transition.
This can also reduce the stress and uncertainty that often come with succession and allow you to focus your time and effort into the running of a successful business that will continue to thrive for years to come.
For support and advice about succession planning, please call 01768 222030 or email help@armstrongwatson.co.uk
