Planning a sustainable business
Building a successful business does not happen overnight. You will have developed plans and strategies to market and grow your business and your client base, but have you developed a strategy for when you plan to exit your business? This is where having a robust succession plan in place can help.
Whether you plan on passing ownership on to younger family members or selling your business for the best possible price, quality financial advice plays an important role in helping you make the right decision for life after (or in between) business.
Our advisers have worked closely with many successful business owners, their accountants and lawyers over the years, from farmers to factory owners and hauliers to house builders to ensure their business will continue to be a success well into the future. We have helped them understand the numerous options available and, importantly, the advantages and disadvantages of each.
The most important thing is to start your succession planning early on. This will not only give your business the best chance of success after you step down but could also enhance the value and attraction of your business for a prospective buyer or future leader.
When exiting your business, you will want to ensure that the values and ethos of the firm remain for your staff and your clients and that whoever is taking over has a clear vision for the long-term viability of the business.
Just some of the considerations when succession planning include:
- Shareholder Protection
- Cross Option Agreements
- Enhancing business value
- Exit strategies
- Financial security in retirement
- Access to assets for family members
- Efficient transfer of wealth
- Corporate governance
- Setting up a trust
Time for a conversation
One of the hardest things many family-run businesses find is having the conversation with the younger generations to understand their aspirations. Do your children want to take over the business and what level of responsibility are they comfortable with? What are their future ideas for the business?
All these are discussions that you need to have early on with your family to ensure that you have time to work with whoever will eventually take over the helm.