Succession Planning
Succession Planning for Business Owners: Secure Your Future Today
Succession planning is an ongoing, dynamic process that every self-employed business owner should begin as soon as they start their business. It’s critical to keep your succession plan up to date with regular reviews, ensuring it evolves as your business grows and changes.
In New Zealand, the average age of self-employed business owners is 58, with many planning to sell within the next 10 years. Therefore, it's essential to start planning early, as you never know when a forced exit may happen due to illness or unforeseen circumstances.
Why Succession Planning is Crucial for Business Owners?
Unexpected Events: A relaxed and controlled succession is the ideal, but in reality, many business owners are forced to sell due to illness. The consequences of these situations can be mitigated with a solid succession plan.
Prepare Your Business for Sale:o Ensure your business has systemised processes and documented procedures.o If your business is highly dependent on you, it’s essential to address this and reduce reliance on the owner.o Implement key performance indicators (KPIs) to show the business's success to potential buyers.o Have a written business plan in place.o Identify who will be your potential buyers: a competitor, staff member, or investor?o Understand how a buyer might fund the purchase and whether you, as the seller, are able to finance it.
Two Key Questions to Consider in Succession Planning:What business am I in?Who are my customers?
At first glance, these questions may seem simple, but digging deeper can reveal unexpected insights. For example, Ford is often seen as a car manufacturer, but its main revenue comes from its finance business, not selling cars.
Identify Your Business and Customers for Greater Success
At Succession First, we specialize in helping business owners understand the true nature of their business and customer base. Our clients typically include:
• Sole Traders and Startups• IT Contractors• Self-Employed Tradespeople• Healthcare Professionals (Doctors, Dentists, Nurses)• Business Partnerships
Once you identify what business you are truly in and who your customers are, your focus will become clearer, increasing your chances of success.
Ready to Plan for Your Business’s Future?
Start your succession planning today with Succession First. Contact us for a personalized consultation and ensure your business is prepared for any future transitions. Secure your legacy—get in touch now!