You’ve no doubt invested a lot of time, effort and money into building your business and making it a success. Congratulations. But what happens to your business when it’s time to retire or move on? What happens when you’re no longer able to run the business effectively, or if you sustain a chronic illness or injury? Do you have a plan in place to protect the value you’ve worked so hard to create in your business?
The fact is, most business owners don’t. And that quickly becomes a problem, when a business owner suddenly becomes unavailable and the business crumbles without a plan to move on. All too often businesses can quickly lose customers, employees, time, the ability to operate and pay its bills and all the goodwill you’ve built up over the years. The value of your business will rapidly decrease without a succession plan, leaving it unable to operate as it should. In the worst-case scenario, the entire future of your business could be in jeopardy if you fail to plan adequately. And that’s something nobody wants.
Succession planning is the answer, but it’s not something that can happen overnight. It’s a process planning for your expected transition out of your business (such as when you retire). Generally, succession planning is a three-to-five-year process – sometimes even longer. There’s plenty to consider and manage when planning your succession, including valuing your business, choosing a successor, selling or transferring your business, structuring a deal and getting the most value possible out of your hard work.
We also have strategies and solutions around insurance for business owners and key personnel in your business, to ensure that if anything happens to them it doesn’t jeopardise your business. If one business owner dies and their estate wants/needs their entitlement paid to them as a cash lump sum, can the remaining owners pay it?
The lack of a succession plan can undoubtedly pose a serious risk to your business. As a business owner, you need to be prepared for all eventualities. Ensure your business is ready to transition seamlessly when the time comes, and start your succession plan now. It’s the only way to maintain the legacy of your business and make sure the process is beneficial for both the old and the new business owners.