As the old adage states, “fail to plan and you plan to fail”. While this may seem a little worn out, it is still very relevant and true, particularly when it comes to business. Most businesses are the result of many years of hard work and dedication. However, owners often fail to consider what may happen if they are suddenly unable to turn up to work, or if they haven’t adequately planned for their retirement. Though it is not necessarily a pleasant thing to think about, much like making or updating a Will, the last thing you want is for those years of hard work to all come to a grinding halt because you did not consider and implement a business succession plan.
Business succession planning refers to assessing, devising and implementing “exit strategies” for the business owner or owners. This may be for when there is an unexpected need for a new owner – such as in the case of death, disability or significant trauma – or used for planning for the future, such as the business owner/s going into retirement, passing the business on to a family member, or selling it to a completely unrelated party.
When implemented correctly, a business succession plan can assist you to address the issues of when and how the changes to ownership and management will occur. It can also help your business to have an improved chance of survival and success when the transition to new ownership or management takes place.
Effective business succession planning should be concerned with the logistical and day-to-day implications for the business should the owner not be around. This includes considering who will manage the operations and/or be the new owner and how the succession would impact the spouse or beneficiary of the exiting party. Essentially a risk management strategy, business succession planning should also involve any other entities that are operated, managed or owned by you or your business.
It is extremely important to have plans in place that will protect not only your lifestyle interests and needs, but also your intentions for your business. The Quinn Group are able to provide business owners with personalised advice on securing the future of their business. For more information on succession planning for your business, call The Quinn Group on 1300 QUINNS (784 667) or on +61 2 9223 9166 or submit an online enquiry.
