A Succession Plan is about maximizing the value of your business so you can achieve a better outcome when it’s time to exit. Many business owners don’t think about a Succession Plan until they’re ready to sell the business. However, it takes 3-5 years minimum to define and execute an effective Succession Plan, especially if you want to take advantage of the potential of a tax free sale of the business as the seller.
1. Start by clarifying your business and personal goals.
Establish what you want the business to deliver to you personally. Then, set business goals that will allow you to achieve your personal goals. This will help you plan for extracting the value you require to enjoy the lifestyle you wish to lead upon succession.
2. Your vision for the business.
Succession Planning forces you to clarify and discuss your vision for the business, which will play a huge part when transferring to new ownership. Vision ultimately enables a more effective working culture, helping to align and prepare your team for succession.
When your team understands the vision and how their key responsibilities and tasks contribute to the realization of this, they become more engaged. This helps develop a more stable environment; one that’s receptive to adopting new leadership and ownership.
3. Establish your business support network.
It’s important to take time out from running your business to work on developing it. Engaging your important business advisors will provide fresh and impartial perspectives at this potentially emotional time. Decision making requires a level head and independent advice to ensure you achieve your desired results.
Your legal advisor may also be involved at the planning phase and will be involved in drafting the sale and purchase agreement, as well as when dealing with any post settlement matters.
Working with a professional accountant and business advisor will be particularly helpful at the due diligence, valuation, and grooming stages. Our broad business knowledge and expert tax advice could help significantly increase the value of your business.
Having your professional accountant and business advisor act as a mentor or coach will help you remain accountable to your leadership role, which will ultimately have the greatest influence on your succession strategy and outcome.
We can help you with accountability coaching. In fact, we want to help you groom your business for maximum value by increasing growth and profitability, improving efficiency and capacity, and managing risks.
If you’d like to start your Success Planning journey, contact us.