Drawing up a succession plan for your company’s future

If you care about the long-term health of your business as well as its more immediate success, it's absolutely vital that you have a succession planning framework in place. After all, how are you supposed to set your company up for the future without a plan?

A solid approach to succession planning can set your company up to survive any future adversity.

Neglecting succession planning is always unwise

If you're planning for your later years, looking at elements like retirement savings, you absolutely must have a succession plan for your business, but this process is often neglected. The Exit Planning Institute found that two-thirds of all businesses in Australia are owned by the baby-boomer generation, and yet only one-third of those owners have done anything about planning their exit strategies.

Who will run your business when you're not around? Business development is about a lot more than just making a profit today; you've got to know how your situation may change tomorrow. The Australian cautioned that this often requires a great deal of planning; selling off your business is a more complicated process than many expect.

What do you need in a future business plan?

A significant aspect of succession planning for Australian businesses is knowing how to put the right people in charge at the right times. QuickSprout advises that as you're thinking about succession, consider your timeline and those of others. How soon will you be moving on from your business – in a year, or five, or 15? Who among your ranks will be ready to take over?

Think about the long-term development of your staff members.

This means considering your personnel and thinking about their long-term growth, not only in terms of job skills but also incorporating intangibles like leadership ability. It's a matter of tracking the long-term growth of your staff and making difficult projections – and if you'd like to make the whole process a little easier, consider asking chartered accountants for help.

Get only the best in business support

As you go through the process of long-term business planning in Australia, you need to have clear insights on what your business is worth and how to transfer control. Not everyone has an innate feel for how these elements work.

That's OK, though, because you can always consider the insights of an outside business development consultant. At Wilson Porter, we're happy to help iron out the details of succession planning or any other challenges that are on your mind. Contact us today to tap into our extensive menu of business support services.