6. BUSINESS SUCCESSION PLANNING

Effective Succession Planning is the key to protecting, growing and realising the maximum value for your business. It is a strategic process that allows you to smoothly transition the ownership and/or management of your business.

Research shows that business value can be impacted by a number of issues, including:

• Complacency of business owners in addressing succession
• Business owners often being unaware of all their succession options
• Generation Y lacking the aspiration to be a business owner
• Increased house prices restricting the funding options for successors

The succession planning process covers the following:

• Understand the direction of the company
• Determine the skills needed
• Find the gaps
• Talk to the current team about their goals and aspirations
• Identify the obstacles in moving current staff to the desired roles
• Confer with everyone involved
• Stay in contact during the process

Succession planning is not the most difficult part of exiting an organization, but it is one of the most important parts.