In this video James explains how business value can be eroded when the majority of knowledge and expertise is held by one key individual.
It’s never too early to start thinking about your succession strategy and developing the skills of your team and business capability.
Succession planning is about creating a sustainable business that will continue to operate successfully into the future, whether you stay in the business or not.
The following infographic contains 6 succession strategies you can start employing today. Adopting these strategies will help future proof your business for when and if you decide to take up an exit opportunity, or relinquish operational involvement in your business.
In this video I answer a common question: If I am just starting to think about exiting my business, how much time should I allow to see the process through?
Using the example of a JPAbusiness client in Sydney who is currently going through a difficult succession process, I explain why talking about succession, getting advice and beginning planning well in advance, will definitely streamline the eventual exit process.
People often confuse the practice of business ‘succession planning’ with ‘retirement planning’.
They are, of course, very different concepts.
Succession planning is a valuable activity for any business, at any stage, regardless of whether the owner is considering retiring, selling or staying with the business for many years to come.
Many people think of succession planning as something old people do once they decide to exit their business. This is far from the truth.
Succession planning is a young person’s pathway to building a valuable business. It’s about creating a sustainable business that will continue to operate successfully into the future, whether you stay in the business or not.
Business planning is about making your business as robust as possible, so it can take advantage of opportunities and also successfully withstand inevitable shocks.
Annual business plans don’t have to be weighty documents, but they do need to contain some key information, with the most important being:
Business owners face unique challenges when they have multiple children and those children have their own expectations as to how the family business should transfer to the next generation.Engaging a business advisor early on can assist to ensure each party feels that the way a business is transferred to the next generation is fair and reasonable for all.
This process is best started well before parents are looking to retire or children are heavily involved in the business.
Businesses that transition between generations are the exception, not the rule, and represent a declining trend.
Just because you have passion for your business does not mean your children have inherited the same enthusiasm. Never assume!
Communication between family members is crucial to ensure there is agreement on whether the next generation will or will not take over, and these conversations should be regular dinner table events by the time the children are teenagers.