With the busy day-to-day operations of a business, we know it can be easy to forget about or to put off, planning for the future. But Stacks takes the hassle and difficulty out of putting effective strategies in place to safeguard your business and put it in the right hands should something unexpected occur.
Business succession means planning for the future of the business. It is about making sure that when changes take place, such as new leadership, the transition will be smooth. It’s all very well to have a plan in your head about what may happen when you or somebody else decides to retire or leave the business for any reason but if it hasn’t been discussed and agreed upon with your business partners and stakeholders, you may find that things do not go exactly to plan.
Failure to plan ahead may result in disputes between business partners down the track. It could mean interruptions to the business that negatively impact on its future. It could also mean that when you exit the business, your financial position is not as good as it could have been if you had planned ahead or that your plans for the next generation of your family to take over the business do not come to fruition.
It is important to have good advice when planning for your business’ future. A Stacks Law Firm commercial lawyer can provide advice and assistance to ensure that your business has strategies in place to cover different eventualities, including those that are planned and those that are unexpected.
Things to consider when making a Succession Plan
Businesses evolve over time so it is important to regularly review your succession strategies, giving consideration to the following:
- Leadership - Who will lead the team in the event that you or another senior member of the business leaves? Who do you want to take over from you? A member of your family?
- Clients relationships - These are built and strengthened over a long period of time. You want to make sure that important relationships are not lost due to a change of leadership or a new direction for the business.
- Knowledge - Holding onto the people who have the greatest knowledge and expertise in your business is important but it is not always possible. When somebody leaves, you don’t want all of their specialist knowledge to go with them. Documenting key information is important for the business’ future success.
- Unforeseeable events - If somebody in your business is injured or becomes unwell, how will this affect the business? Who will step in to take over from them and how will client relationships be affected? Is there anybody else in the business with the expertise to carry on in their place?
- Issues and conflict - What possible issues may arise in the future that could cause conflict? In the event that there are disputes about the direction of the business, what procedures are in place to help resolve them?
- Selling the business - If an owner or part-owner want to sell, who will buy the business? Will there be a Management buyout? Will the business be sold to an external party?
Need some advice about succession planning? Call us today