Getting started on the Succession Planning process

The hardest part of the process can be making a start. Often once you have begun the goal setting process, the remainder will start to flow.

You may be delaying thinking about Succession Planning for a variety of reasons. However it is important to recognise that the transition of your business is inevitable and you will have greater control if the process is planned.

Begin by considering what you want to achieve from the process. What are your goals and why? Every business is unique and the optimum outcome for each one will vary.

From the beginning it is important to establish and maintain a clear focus on the core goals and outcomes sought. For example, do you want to pass the business to your children? What income do you need to retire?

Often attention shifts to taxation, financial and legal issues, ignoring why you started the process in the first place! This is why, before you commit yourself to the process, you need to understand and clearly articulate what is truly important to you.

Appointing an advisor to help you start can force you to set aside time for the process. Otherwise make a start by setting aside just an hour to start writing a list of your goals for your business, what you want to do post-transition and consider your future income requirements.

Succession planning does not have to be about selling your business or retirement. Instead view it as good governance practice in making sure that your business could cope if you were not in a position to run it.