Succession planning? As a business owner with a never-ending To Do list, this is often the last thing on your mind. Also known as continuity planning, it is often regarded as an issue reserved for the big corporates.
The reality is that whether it is planned or unplanned, complex or simple, succession planning – or the lack of it – inevitably has profound implications for smaller businesses.
Without it, for example, the business you spent your whole life building could end up being sold for under its true value. Worse still, it could end up failing and become a black hole of debt consuming your personal assets. This is not always the case in corporate enterprises, where sheer size and operating principles shield principals from the harsh realities facing small business operators.
Clearly, therefore, a sound understanding of the concept of succession planning is of vital importance to any entrepreneur, regardless of how big their business is. Crucially, it involves much more than simply setting up a will or an estate planning structure.
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