At Hetherington Johnston we regularly hold Succession Planning events and to give you an overview of what you may need to consider, I thought I would touch on the subject of your business’s succession plan here briefly. With my new clients in particular, the very first piece of advice I offer them is a quote from Stephen Covey’s book “The Seven Habits of Highly Effective People”. One of those habits is to begin with the end in mind.
From their very first day in business, in fact, their business plan should address that important habit… What’s my business to look like in 1, 3 and 5 or more years time? How and when do I plan to retire from it? Do I hope to sell it? If so, for how much? And to whom? I also need to know what it might be worth at various stages along the way and what it needs to be worth when I do come to sell it. Will that be enough if it’s to contribute to my retirement savings? If not, what needs to happen for it to be worth that much?
All of these questions need clear answers and the earlier they are addressed, the more peace of mind you will have about the future of your business. Keep updating these answers along the way rather than at the end – that’s why we say that succession planning is about the journey, not the destination. A carefully considered exit strategy reflects the hard work and capital that you’ve invested into your business and provides the basis for ensuring that when the time comes to exit, you will recover that investment and more.
To discover more about succession planning and to work on a plan for your own business, register your interest in our next event by (CLICKING HERE). Feel free to email or call Donna ( or 04 566 3302) for more information. Everyone who attends our business planning seminars leaves feeling confident that they have the power and knowledge to run their businesses successfully. What are you doing to help your business today?