Succession planning for small businesses

It takes guts to start a business. It also takes a strategic mindset to succeed.

Business owners are no strangers to weighing risk and navigating uncertainty, but the recent economic climate has dialled everything up. Many business owners face the uncomfortable position of having to remap carefully thought-out succession plans and exit strategies, and to consider selling their business before they’re ready or, possibly, for less than it's worth.

Considering your exit options

Before you make any rash decisions, let's explore your transition options, because there's more than one route to a successful exit:

• Liquidate and Close: When it's time to close the chapter, selling assets might be the straightforward choice.
• Family Transition: Passing the baton to a family member can keep your legacy alive.
• Employee Buyout: Your team might be your business's best next owners — they already know the ropes!
• Direct Sale: A clean break might be simplest, selling to an outsider ready to take the reins.
• Gradual Buyout: This involves a phased approach, allowing a new leader to buy into the business gradually.

Key preparation steps

Effective succession involves some crucial preparations:

• Systemise Operations: Make sure the business can function smoothly without your daily input.
• Profit Optimisation: Focus on genuine profitability, not just tax minimisation.
• Early Planning: The best time to plan isn't at the eleventh hour but well before you're ready to step back. This ensures you maximise your business's value and secure a better outcome.

Don’t put off your succession plan — even if you are not ready to sell

If you're yet to sketch out your succession plan, we’re here to help you explore and establish a strategy that suits your timeline and goals. Whether it’s a gradual transition or immediate exit, planning ahead with Munro Benge means you’re prepared for tomorrow, today.

Get in touch now — let’s ensure your business transition is as successful as its operation. Plan ahead with us and we’ll make sure you have a succession plan that not only meets your needs but also preserves the legacy of your hard work.