When you are young and first start a business, the furthest thing from your mind is succession planning. But succession planning is essential for every single business owner around the world.
Have you sat down to think about what will happen if you are unable to work for some reason, maybe illness or injury? Who will take over? Every business owner should take this into consideration from early days, enabling them to form someone into a leader that knows the ins and outs of the business well enough to run it as a profitable business.
Most companies find ways of doing this by awarding a top employee that has been with them for years, proved their dedication and already manages the company to a high level with a partnership in the company. Other companies forget about this until it’s too late.
In the event of an accident or serious injury, when you are unable to work again, what will happen to the company? After dedicating years of your life, possibly sacrificing your family life and working yourself to the bone you find that you will be forced to close the doors, lose a good income and leave your staff on the street without work.
None of these points are good in today’s economic climate. If you have been getting a decent salary from your company for a few years, you cannot afford to just close the doors. Never mind what it will do to your staff, some of which may have been with you for many years.
Another consideration is should you decide to close, the financial impact on the company will be large as you pay out staff and the cost to close can be significant, leaving you with even less money to survive on.
Plan for Your Future
Succession planning is the only way forward for most companies. Having a plan in place can save you money, give you a good income when you are no longer at the helm and still enjoy peace of mind that the company is running at a profit and the workers still all have their jobs and income.
Introducing Business Exit Management Ltd - ExitMan.co.nz
Some business owners will toy with the idea of succession planning for years as their health starts deteriorating due to the stress that they have taken on day after day for so many years. In many of these situations the business owner has actually been told to slow down and stop working by a medical professional.
This is a very serious time and a time when you need professional help with your succession planning.
Peter Vale is an experienced entrepreneur, business exit project manager, author and event speaker who understands how difficult it is to make the decision to take a step back from a company you have built up for so many years.
Peter also understands how many companies there are where owners are unable to take a step back because they don’t have a plan in place, which is why he offers solutions, support and advice to help business owners leave their companies with the maximum amount of profit in the shortest period of time.