If you don't have a Succession Plan - it's not to late...
The need to consider succession plan can be driven by a number of different factors. Health concerns, work life balance (or lack of it), concerns over the longevity of the business, wanting a change and advancing years are all common.
In an ideal world business owners should be thinking about this much earlier than they typically do. To paraphrase New Zealand data researched by ASB:
- There is an increasing trend in the number of businesses for sale
- Approximately 40% of owners expect to sell in the next five years - this could see up to 120,000 businesses for sale. That's a lot of business to stand out from...
- Only 21% of business owners are completely prepared for a short term exit - that's 79% that aren't ready!
Be smart and get prepared early. A succession plan can:
- Help sharpen your focus on what's really important, and avoid being distracted by the constant 'noise' around you. Just image what could happen if you invested more time on the things that are truly profitable
- Give you the peace of mind that your business could trade without you for a period of time
- Be able to exist on 'your terms' quickly should the unexpected happen or an exciting opportunity arise
The ideal solution for you may change over time and can be significantly influenced by external factors. A common mistake is that many business owners think this is a set and forget activity.
One thing we can promise, planning early will give you more focus and options, improve your profit and the best chance to exit on your terms.