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.