No matter how much you invest in making your business environment positive and progressive, or how much you invest in the wellbeing and work-life balance of staff, there will always be staff turnover.
People leave organisations for many reasons, sometimes predictable and sometimes impossible to predict. One of the best ways to future proof your business is by implementing a strong succession plan.
The process of succession planning is valuable in helping to identify future leaders within your business, along with other people who have the potential to step into business-crucial positions – either short or long term.
Succession planning in family businesses is most crucial and often the most complex to navigate. Family businesses usually run on a different set of parameters, based on the emotional connections attached to family members involved in the business. Handover of business ownership can come about for a number of reasons, including retirement, incapacity or even death. It is vital that your plan for the long term success of the business is documented and the plan thrown into action when the time comes, especially where family members are involved.
Securing the future success of your business – no matter how small or large – provides peace of mind and a road map to navigate the way. The establishment of an advisory group to help you through this process is common and would usually involve at a minimum, your lawyer, accountant and your financial advisor.
An often overlooked facet of succession planning is how much do the current owners require for their future lifestyle in retirement and how will this be funded.
Importantly whilst many business owners may have spent a lifetime in building a successful business, the fruits of that dedication will only come about through a well thought out succession plan.
If you would like to chat about how this impact your financial goals please call me on 5331 6550 or email [email protected]