Succession planning isn’t just a matter for over 60s looking down the barrel of retirement; it’s a process every forward thinking business owner should engage in to ensure that they maximise the value of their business in the long-term.

It’s important to put thought into when and how you will move on from your business. The earlier you start planning for the future, the better off you’ll be in the long run. Owners of businesses with a workable succession plan have a significant competitive advantage over those who have put planning aside in favour of short-term concerns.

Succession Options

1. Sale - for many business owners, selling all or part of their business is the only option.
2. Family succession - transferring ownership and control of the business to family members can be a wise option for anyone with family members already working in the business, and who have a keen interest in leading the business into the future.
3. Take on a new partner - if the thought of removing yourself from active involvement in the business is favourable, consider taking on a new partner and allowing them to run the business.
4. Scale down - many business owners find the thought of selling up or completely handing over control to someone else daunting, particularly if they have worked hard to establish the business.
5. Hire a manager - appointing a competent manager can be a wise choice for an owner operator who doesn’t want to relinquish ownership of their business, but would prefer to handover the hard work.
6. Shut up shop - sometimes the best option is simply to allow the business to stop running. This does not necessarily mean that you will lose out financially. Closing down the business usually means selling off inventory, machinery, equipment or vehicles.