For many business owners, succession plans are one of the most neglected aspects of managing a company, yet they are one of the most important.
A sudden, unplanned succession event is one of the more disruptive things that can happen to any company. After the year that’s been, we all know how quickly things can change.
As easy as it is to ignore this type of planning, it needs to be done. In the case of an unplanned succession, questions that need to be addressed can be anything along the lines of:
- What is the plan for the business?
- What’s going to happen from a legal perspective?
- Who is going to step in for the day-to-day operations?
To manage succession successfully all of these points, and more, must be addressed.
People changing roles, companies and careers is just a reality of managing a business. It means succession plans are essential to ensuring the company continues to thrive, even after the event.
If your company doesn’t have a plan to deal with change, you are opening yourself up to unnecessary risk. Change is inevitable and you don’t want the hard work you’ve put into your business wasted because of a lack of succession plan. It’s really important to start thinking about what you may like to happen to the business when you retire or move on, do you want it to be sold? or could management buyout the business?
These questions can be overwhelming, if you haven’t got a solid plan in place it’s understandable! Many of our advisors at Viridian are experienced in succession planning for small businesses and are available to help.
It is crucial to plan ahead and build the right team as early as possible, so you and your business don’t get left behind.
James Walker is an Executive Advisor at Viridian Advisory.
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