Running a business is stressful – there’s no denying it. A lot of time, effort and money is invested – from the initial set up to the planning and operations, and everything in between. The last thing you want is to lose all of your hard work when you eventually step down from your position of power.
Enter, succession planning.
A succession plan is a process that identifies a secondary leader to replace you when you leave your business, with steps in place to develop and prepare said new leader. A good succession plan should not only appoint a new manager but should also detail exactly what will happen to your business once you are no longer in charge.
But, I’m not planning to step down anytime soon?
Many business owners put off the task of creating a succession plan, with the notion that they will not be leaving their business anytime soon. However, as much as we all like to think we are indestructible, unfortunately, accidents and emergencies do happen. If you or your business partner suddenly became sick or injured and were no longer able to carry out leadership duties, your company would go into turmoil.
It pays to be prepared.
Ways in which a succession plan can help you:
1. Avoid potential future conflict
If you have not chosen a successor or outlined any expectations for your business, and the worst case scenario happens, your staff will be faced with stressful financial decisions to make. Establishing a game plan for your business will eliminate, or at least dilute, the inevitable conflict that stems from stressful decision-making.
2. Kickstart the extensive training process early
The earlier you choose a successor, the earlier you will be able to start the comprehensive training process that is involved with business ownership and management. Even if you aren’t planning to retire or step down anytime in the foreseeable future, you will feel at ease knowing you have self-trained somebody else to take the reigns.
3. Make the transition a smooth one
Saying goodbye is never easy, especially if it’s a business you have built from the ground up. Having a succession plan in place from the get-go will make the transition a much smoother process, as you’ll be following a set of steps that allow you to collaborate with your successors and slowly relinquish control.
If you’re looking for valuable advice with your succession plan, contact us today and speak with one of our trained specialists.
General Advice Disclaimer
General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
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