If you’re a business owner, it’s likely your company is far more than simply your job. After all, you’ve poured your time, savings and energy into building your business and it’s probably your biggest asset of all. But when it comes to what happens next – at whichever point you take a step back – it’s hard to give a clear answer. We’re addressing some succession myths to help you plan ahead.
I’m not retiring yet
It’s a myth that you won’t need to consider succession until right at the stage you’re approaching your retirement. You’ll need to prep your business so it can still thrive without you, no matter when you step back. You’ll need to consider training your future leaders, for example.
It’s simpler to sell
It might sound simpler to sell your business at first glance, but it’s probably not the straightforward solution you think it is. You can’t be certain whether there’ll be a willing buyer waiting to pounce or – even if there is – that an outside buyer is the right fit for your team or clients. Building an internal succession transition can often be a more sustainable move for a business owner to make.
I’ll deal with it later
This approach can be a tad risky – life, after all, doesn’t tend to stick to our timelines, so preparing ahead is crucial when it comes to protecting your business in the longer term.
Sharing ownership loses control
You don’t have to step away entirely – you could consider sharing equity gradually whilst you still maintain your leadership and income. A phased approach will keep you close to the business whilst giving your successor a chance to prove their capabilities. An expert London law firm, such as Forsters , can help you plan.
No one is ready yet
This might be true – and yours could be big shoes to fill – but your successor is built, not born. You’ll want to invest in somebody that shows the potential you need, and work towards their development in the longer term.