Taggart Partners was pleased to be an exhibitor and presenter of the Hunter Business Chamber’s Power Business Exchange in September. For many years Taggarts has been providing specialised advice on succession planning for small business within this region and we used that expertise in our presentation. Here are our top tips
- It is never too early to start your succession plan, Do not wait until the eve of a sale or retirement
- Search out your Stars! The future of the business depends on its strong leadership. Identify the next leaders of the business with talent and skills that will take the business into the future. This may be family members or employees of the business. Only groom family members who possess the appropriate skills and talent for the job.
- Minimise the Value Gap! Ensure you know key profit drivers in your business by having regular and accurate financial and management information available.
- Document how the business runs, Ensure that business systems and procedures are documented and kept current.
- Involve all of your business advisors, Include your business succession advisor, your accountant, business broker, solicitor, banker, financial planner, insurance agent and real estate agent if property is involved.
- Review your Corporate Structure, Talk with your accountant and solicitor ensure that your current structure will allow an easy and tax effective succession transfer or sale.
- Know your role, How involved do you want to be in the transition phase? What will be your role? How will you work with the new leader or owner of the business?
- Communication is the key, Once a succession plan is in place, it is important to communicate that plan to key management people and or family. Your successor needs a clear understanding of the path to the future, as well as the role they play in that path.
- Review, Review, Review, Your plan will be custom designed for your business. A succession plan needs to be constantly reviewed for relevance and accuracy.
To find out more about how to prepare your business for the future schedule a complementary appointment with Ross Taggart.