AMA: I'm Darren Smith and I've just implemented a business succession plan, Ask Me Anything!

Certainly! Succession planning is crucial for ensuring a smooth transition in business ownership whether than be internally or externally through a trade sale.

conradfrancis

Some key factors to consider when preparing for a profitable succession:

3 major considerations  normally – Time / People /Finances

1. Begin succession planning well in advance. Don’t wait until the last minute. 
2. Understand and document what the business is looking to achieve and also how this interacts with what the business owners' goals are.
3.  Build strong foundations in your business and always look for improvement  

      You want to make your business as attractive as you can to any potential purchaser. That             doesn’t mean being ready to sell straight away, but you are constantly refining your                    offering, your operational processes and your client engagement to put you in the                      strongest position possible. You are also setting the business up to run well even when            you are not there. Having the right team in place with aligned values is a core pillar.

        4. Engage senior leaders in the process. 

         5 .Assess Current Talent: Identify potential successors within your organization. Assess            their readiness and potential for leadership roles

        6  Assess other Options and have a plan A, B and sometimes c  

        7 Invest in Professional Development: Provide training and development opportunities         to groom future leaders

        8 Consider Emotional Impact: Succession can be emotionally charged. Acknowledge feelings and provide support to those affected

Common Pitfalls to Avoid:

• Lack of preparation and not allowing enough time
• Poor communication
• Neglecting Succession Planning: Don’t postpone discussions about roles and successors. Waiting until a significant event can lead to confusion and conflict
• Keeping Succession Plans Secret: Transparency is crucial for a smooth transition.
• Trying to do it yourself when you don’t have experience …Not involving trusted professionals like advisers, lawyers, accountants or coaches
• Losing sight of impact on clients and the team
• Unrealistic expectations or having a 5 year plan that is always 5 years off…
• Cultural misalignment